Primary market quiet; credit spreads blow out; Bombardier, Pyxus ‘destroyed’; Zayo jumps

By Paul A. Harris and Abigail W. Adams

Portland, Me., Nov. 19 – The domestic primary market was dormant on Monday with not much activity expected for the remainder of the truncated Thanksgiving holiday week.

However, one deal still remains on the forward calendar, which may be the sole deal of the week.

Atlantica Yield remains in the market with its $300 million senior notes offering, although the maturity of the notes may be shortened and price talk widened, sources said.

There is a post-holiday pipeline of deals in the domestic market. However, their execution will depend on market conditions and issuer expectations, a source said.

Meanwhile, the secondary space continued to struggle with the market in general down 1 point.

The blowout in credit spreads continued with last week marking the largest widening of credit spreads in four years.

Bombardier Inc.’s and Pyxus International Inc.’s junk bonds saw the steepest decline with notes from the issuers falling 10 to 12 points in a single week.

While the market is currently sloppy, it could change in the opposite direction quickly, a source said.

There were some bright spots in the market on Monday with some issues improving on takeover news. DJO Global Inc.’s junk bonds jumped on Monday on news it would be bought out by Colfax Corp.

Zayo Group Holdings Inc. also saw its junk bonds improve on news it is being eyed for a potential takeover.

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