Sabre prices drive-by, sees strong break; Rakuten on deck; retail names improve

By Paul A. Harris and Abigail W. Adams

Portland, Me., Nov. 21 – The domestic high-yield primary market churned out one deal on Monday – Sabre Corp.’s upsized $555 million issue of five-year senior secured notes (Ba3/B), which came at a discount.

Tokyo-based Rakuten Group, Inc. is on deck with a $500 million offering of two-year senior notes (S&P: BB+) slated to price on Tuesday.

Pegasus Merger Co./Tenneco Inc.’s $1 billion offering of six-year senior secured notes (B2/B-) remains on the forward calendar with the deal heard to be facing significant headwinds.

Meanwhile, it was a sideways day in the secondary space with the cash bond market largely unchanged in light volume as the dovish pivot rally sparked by softer-than-expected inflation reports continued to falter.

While stronger-than-expected retail sales figures and retail earnings last week threw cold water on the rally that lifted the broader market, retail names continued to add after a strong performance the previous week.

Gap Inc.’s senior notes (Ba3/BB) continued to improve after the strong gains made following earnings last Friday.

Macy's Retail Holdings LLC’s senior notes (Ba2/BB) also continued to inch higher after strong earnings the previous week.

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