Royal Caribbean, American Airlines price junk deals; Uniti trims premium; Lumen falls

By Paul A. Harris and Abigail W. Adams

Portland, Me., Feb. 8 – The junk bond primary market was host to drive-by issuers American Airlines, Inc. and Royal Caribbean Cruises Ltd. on Wednesday.

Meanwhile, it was another red day in the secondary space with the cash bond market off ¼ point.

The mini-rally following Federal Reserve chair Jerome Powell’s Tuesday comments did not have staying power with the market opening Wednesday soft and continuing to move lower throughout the session, a source said.

While it was a soft day for the broader market, W.R. Grace Holdings LLC’s new 7 3/8% senior secured notes due 2031 (B1/B/BB+) were holding on to a decent premium in active trade although the notes were well off their highs.

However, the trend of new issues putting in strong performances in the secondary space was showing signs of waning with Nielsen Holdings plc’s 9.29% senior secured notes due 2029 (B2/B/BB) continuing to fall in heavy volume.

Uniti Group LP, Uniti Fiber Holdings Inc., Uniti Group Finance 2019 Inc., CSL Capital, LLC’s 10½% senior secured notes due 2028 (B2/B/BB+) also continued to come in with the notes trading below a 101-handle on Wednesday for the first time since breaking for trade.

However, it was Lumen Technologies’ senior notes that were the major laggards of Wednesday’s session with the communications company’s capital structure under pressure after a large earnings miss.

Lumen’s notes fell 1 to 8 points while subsidiary Level 3 Financing, Inc.’s senior notes were down 2 to 4 points.

© 2015 Prospect News.
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