Travel names lower; Carnival, Royal Caribbean paper eyed; Talen, Staples notes drop

By Cristal Cody

Tupelo, Miss., June 9 – Names in the travel sectors saw their paper soften along with their credit default swap spreads this week, sources said Thursday.

CDS spreads from American Airlines Group Inc., Royal Caribbean Group, Carnival Corp., United Airlines Holdings, Inc., United Airlines, Inc. and Delta Air Lines, Inc. all widened in the past week ended Wednesday, a market source said.

Carnival’s 6% senior notes due 2029 (B2/B) dropped about 1 point to the 80 bid area over Thursday’s session after losing 1¾ points in the prior day, a source said.

Carnival’s CDS spreads were more than 70 basis points wider in the past week.

Royal Caribbean’s 3.7% senior notes due 2027 (B2/B) rose about ¾ point to the 74¾ bid area but were trading over 2 points lower on the week, a source said.

The cruise operator’s CDS spreads also eased 90 bps over the past week.

In other distressed issues, Talen Energy Supply LLC’s 10½% senior notes due 2026 (/D/C) sank 6 points to 64 bid by the close, a market source said.

Trading was active on $9 million of volume.

Staples, Inc.’s senior notes were trading about 3 points lower and its CDS spreads nearly 100 bps wider on the week.

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