Ziggo prices junk bonds; Royal Caribbean under water; Ford mixed; Bed Bath & Beyond falls

By Paul A. Harris and Abigail W. Adams

Portland, Me., Jan. 6 – With a challenging backdrop one issuer managed to clear the high-yield bond calendar, although not with overwhelmingly good pricing for its new two-part issue.

VodafoneZiggo sold a $2.1 billion equivalent new issue on Thursday and left just one name on the calendar going into the last day of the week.

Meanwhile, the secondary space remained weak on Thursday. While the tone improved as equities rallied midway through the session, losses continued to mount for rate-sensitive names.

The 10-year Treasury yield hit its highest level in two years on Thursday, climbing to 1.751% before closing the day at 1.724%.

New issues felt some pain.

Royal Caribbean Cruises Ltd.’s recently priced 5 3/8% senior notes due 2027 (B2/B) sank below par in high-volume activity.

Ford Motor Credit Co. LLC’s new tranches (Ba2/BB+) were mixed in active trading with the short-duration notes improving but the longer duration notes continuing to lag.

Realogy Holdings Corp. 5¼% senior notes due 2030 (B2/B+) were also lagging their issue price in high-volume activity, although the notes improved from their weak break.

Outside of new issues, Bed Bath & Beyond Inc.’s 5.165% senior notes due 2044 sank more than 4 points in active trading following a sizeable earnings miss.

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