Junk prices $2.1 billion, eyes busy December; Fortress lags; Gap gains; Acute Care tumbles

By Paul A. Harris and Abigail W. Adams

Portland, Me., Nov. 17 – An active Friday session in the junk bond market had three issuers price single dollar-denominated tranches for a combined total of $2.1 billion.

The holiday-abbreviated week ahead is apt to have limited new issue activity, according to a debt capital markets banker who added that it is possible the pre-Thanksgiving week could put up no issuance whatsoever.

However, the runup to year-end promises to be quite active, the banker said, adding that the 20 remaining November and December market sessions, following the conclusion of the Thanksgiving week, could see $10 billion of issuance.

Meanwhile, the secondary space was firm on Friday with the cash bond market adding 1/8 point.

Fortress Transportation and Infrastructure Investors LLC’s 7 7/8% senior notes due 2030 (Ba2/B+/BB-) briefly traded with a premium during Friday’s session.

However, they lost steam as the session progressed and closed the day below their discounted issue price.

Gap Inc.’s 3 5/8% notes due 2029 (B1/BB) made large gains in heavy volume after a large earnings beat.

However, heavy selling in US Acute Care Solutions, LLC’s 6 3/8% senior secured notes due 2026 (B2/B-) continued with the notes dropping more than 10 points since reporting earnings earlier in the week.

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