Secondary action dominated by Twitter, Carvana; Carvana paper declines; Exela softens

By Cristal Cody

Tupelo, Miss., April 26 – A few distressed names were seen in secondary trading on Tuesday in a session dominated by Twitter bonds trading higher off Elon Musk’s $44 billion purchase that will take the company private.

Carvana Co.’s existing paper also dominated the secondary space over the day as the online car retailer brings a new debt offering.

Carvana’s notes were down about 7/8 point to 1 3/8 points on handles in the mid to low 70s and 80s and yields hovering over 9%, a source said.

Carvana’s 4 7/8% senior notes due 2029 (Caa2/CCC+) declined 1 3/8 points to hit 76¾ bid with $20 million of notes changing hands, a source said.

Trading action in distressed energy paper stayed light as oil prices recovered from losses on Monday, according to market sources.

The day’s tone was weak with measured volatility soaring over 24% and stock indices sliding over 2%.

Exela Technologies, Inc.’s 11½% first priority senior secured notes due 2026 (Caa3/CCC-) fell 1 point to 39¼ bid on light trading volume totaling $2 million, a source said.

Exela’s paper has dropped about 9 points since the start of the month.

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