Occidental megadeal, Spectrum price; United Mileage holds premium; AA down again

By Paul A. Harris and Abigail W. Adams

Portland, Me., June 26 – The domestic high-yield primary market continued to churn out the megadeals on Friday further solidifying June 2020 as the heaviest volume month on record for the junk bond market.

Fallen angel Occidental Petroleum Corp. priced its first junk bond deal, a massive $2 billion, three-tranche offering.

Elsewhere, Spectrum Brands Inc. priced a $300 million issue.

However, terms for ams AG's €1.3 billion equivalent two-part offering have yet to materialize.

There was one deal on the forward calendar at Friday’s close – Germany-based thyssenkrupp Elevator’s €4.05 billion equivalent five-part offering.

Meanwhile, in the secondary space the travel and leisure sectors continued to take the brunt of investors’ flight from risk assets as a resurgence of Covid-19 cases cause some states to reintroduce restrictions.

While airlines were among those hardest hit, United Airlines Holdings, Inc. subsidiaries Mileage Plus Holdings LLC and Mileage Plus Intellectual Property Assets, Ltd.’s 6.5% senior secured amortizing notes due 2027 (Baa3//BBB-) were trading well above their issue price.

However, the sell-off in American Airlines, Inc.’s 11¾% senior secured notes due 2025 (Ba3/B+/BB-) continued on Friday.

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