Fortress downsizes; cruise lines sink on refinancing concerns; Bed Bath & Beyond tanks in HY

By Paul A. Harris and Abigail W. Adams

Portland, Me., June 29 – The dry spell in the high-yield bond primary market broke on Wednesday as Fortress Transportation and Infrastructure Investors LLC cleared the market with a downsized offer.

Meanwhile, the secondary space was a mixed bag on Wednesday with some credits stabilizing while others plunged after the market resumed its downtrend on Tuesday.

While selling pressure was not evenly felt across the market, topical news sparked a fire sale in certain credits and sectors.

Bed Bath & Beyond Inc.’s senior notes (B3/B+) sank double digits after another disastrous quarter and the ouster of the company’s chief executive officer.

The selloff in Carnival Corp.’s senior notes intensified on Wednesday after a Morgan Stanley analyst released a report illustrating a scenario that would drive the company’s stock to $0.

The report, which highlighted the problem the company will face refinancing its debt, drove down other cruise line operators.

Royal Caribbean Cruises Ltd.’s senior notes fell 1˝ to 2˝ points with the 5 3/8% senior notes due 2027 (B2/B) claiming the title of worst performing deal of the year.

Spirit AeroSystems, Inc.’s 3.95% senior notes due 2023 (Caa1/CCC+) outperformed the market with buyers lifting the notes 2 points.

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