Flora Food on tap; WeWork prepares debut; Netflix below par; Freeport slides; ATD tanks

By Abigail W. Adams and Paul A. Harris

Portland, Me., April 24 – While no new deals priced on Tuesday, the European and domestic high-yield primary market remained active with the forward calendar growing.

Flora Food Group set price talk for its €1.05 billion equivalent dual-currency offering of eight-year senior notes (confirmed B3/expected B-/expected B-) with pricing expected Wednesday.

WeWork announced its debut in the junk bond market with a $500 million seven-year bullet offering set to price later in the week.

Meanwhile, the secondary market was soft across the board on Tuesday with ETFs seeing a sell-off and bonds in the ETF basket down ½ to ¾ point, a market source said.

Netflix, Inc.’s new 5 7/8% senior notes due 2028 (Ba3/B+) were weaker on Tuesday and trading below their issue price as the internet television network’s older issues also traded down.

Freeport-McMoran Inc.’s junk bonds were down 1.5 to 2.5 points on Tuesday after the company reported disappointing first quarter earnings before the market open and announced its mining operations in Indonesia had encountered a problem.

However, American Tire Distributors’ 10¼% senior notes due 2022 were the major losers of Tuesday’s session with the notes dropping almost 50% after Goodyear Tire & Rubber Co. announced it would no longer distribute its tires through the company.

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