Norwegian prices junk drive-by; Civitas at a premium; DaVita heavy, WW better on drug news

By Paul A. Harris and Abigail W. Adams

Portland, Me., Oct. 11 – Cruise line NCL Corp. brought a drive-by junk bond deal on Wednesday, constituting new business for the primary market.

Meanwhile, the secondary space was again showing indecision regarding the Federal Reserve’s path forward following the release of minute notes from the Federal Open Market Committee’s September meeting and on the eve of the latest Consumer Price Index report.

While the broader market remained focused on the macro trade, new paper and topical news were the drivers of junk trading activity during Wednesday’s session.

Civitas Resources, Inc.’s new 8 5/8% senior notes due 2030 (B1/BB-/BB) were in focus with the notes adding to gains following a strong break the previous session.

DaVita Inc.’s senior notes (B1/B+) plunged to their lowest level of the year with the dialysis provider heavy as analysts predict weight loss drug Ozempic showed promise as a treatment for kidney failure.

While the news dragged down DaVita, it lifted WW International Inc.’s 4½% senior secured notes due 2029 (B1/B) which have made strong gains since the company’s acquisition of weight management telehealth platform Sequence, which prescribes Ozempic.

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