Atlantica Yield withdraws; California Resources in focus as crude oil dives

By Paul A. Harris and Abigail W. Adams

Portland, Me., Nov. 20 – The sell-off in equities, blowout of credit spreads, and plummeting crude oil futures continued to take its toll on domestic primary market activity.

Atlantica Yield plc, the sole deal on the forward calendar, withdrew its offering on Tuesday, citing market conditions.

The secondary space remained sloppy with the market in general down about ¼ point, a market source said.

California Resources Corp.’s 8% senior secured second-lien notes due December 2022 were the most actively traded issue of Tuesday’s session with the notes shaving off 3 points as crude oil futures plummeted.

Several recent issues from the energy sector reached their lowest point since pricing Tuesday, including new paper from Chesapeake Energy Corp. and Transocean Inc.

However, one recent issue from the energy sector continued to hold above issue price.

While slightly weaker on Tuesday, Vantage Drilling International’s 9¼% senior secured first-lien notes (Caa1/B) were still seen at a premium to par. The issue is one of few deals that priced in November to perform well in the secondary space.

RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc.’s recently priced 9¾% senior notes due December 2026 (Caa1/CCC+) continued their downward momentum in active trading on Tuesday with the notes shaving off another ½ point.

Outside of recent deals, L Brands, Inc.’s 5¼% senior notes due 2028 dropped 2¼ points in active trading Tuesday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.