Rakuten prices blowout upsized junk offering; Fortress adds; Shelf Drilling recovers

By Paul A. Harris and Abigail W. Adams

Portland, Me., April 3 – In a two-deal day in the junk bond primary dollar market, one deal had an extra amount of buzz as Tokyo-based Rakuten Group Inc. brought an upsized offering that priced out of a several-times-oversubscribed order book.

Meanwhile, the secondary space had a soft open but firmed into the close with the cash bond market ending the day largely unchanged, a source said.

Trading activity remained muted with the market laser focused on new issuance and the deals in the pipeline.

As market players awaited the deals on deck to break for trade, Fortress Transportation and Infrastructure Investors LLC’s new 7% senior notes due 2031 (Ba3/B+/BB-) were active with the notes improved as market conditions firmed.

Comstock Resources Inc.’s mirror add-on to the 6¾% senior notes due 2029 (B2/B/B+) were also trading at a healthy premium to their reoffer price.

Shelf Drilling Holdings Ltd.’s 9 5/8% senior secured notes due 2029 (B3/B-/B) had a reprieve on Wednesday from the selling pressure of the past two sessions.

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