Junkland: no new deals; reopening trade falters: AMC, Carnival, Caesars under pressure

By Paul A. Harris and Abigail W. Adams

Portland, Me., Dec. 17 – The domestic high-yield primary market remained dormant on Friday with many considering it closed for the year.

Skillz Inc.’s deeply discounted $300 million issue of 10¼% first-lien secured notes due 2026 (B3/B-) is poised to mark the last deal of the year.

The deal, which priced at 95 to yield 11.598%, also ranks as one of the few deals to price with a yield north of 11%.

Meanwhile, the secondary space was flat on Friday as liquidity continued to thin.

There was little activity in the space with only four names logging more than $10 million in reported volume, a source said.

“People are hiding,” a source said.

While volumes were light on individual names, the reopening trade continued to falter as uncertainty surrounding the impact of the Omicron variant began to take its toll.

AMC Entertainment Holdings, Inc.’s 10% senior secured second-lien notes due 2026 (Ca/CCC-) were the most active name in the secondary space with the notes continuing to trade down.

Carnival Corp.’s 6% senior notes due 2029 (B3/BB-/B+) were also trending lower in active trading.

Caesars Entertainment Inc.’s 4 5/8% senior notes due October 2029 (Caa1/CCC+) were also down.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.