Calpine notes flat; U.S. Steel drops; Rite Aid gains; primary quiet

By Abigail W. Adams

Portland, Me., Dec. 20 – After an active week with several surprise drive-by deals, the domestic high-yield primary market was quiet on Friday with sources expecting it to remain closed until the new year.

The secondary space was equally quiet on Friday with few notable movers in the space, a market source said.

After grinding tighter throughout the week, the market was ending the week largely flat.

Calpine Corp.’s newly priced 5 1/8% senior notes due 2028 were the most actively traded issue of the day although the notes were hovering around their issue price.

U.S. Steel Corp.’s 6 ¼% senior notes due 2026 were the major losers of Friday’s session with the notes down in active trading after the company slashed its fourth-quarter guidance, announced a dividend cut, a plant closure and a wave of layoffs.

Rite Aid’s junk bonds continued to gain on the heels of a surprise earnings beat and a ratings upgrade of its longer duration bonds.

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