Tenneco on tap; secondary rally fades; Citrix weaker; Carnival falls; Charter down

By Abigail W. Adams

Portland, Me., Oct. 31 – The domestic high-yield primary market reared its head on Monday with Pegasus Merger Co. announcing a roadshow to market $1 billion of six-year no-call-three senior secured notes backing Apollo Global Management Inc.’s buyout of Tenneco.

The announcement of the long-awaited deal hit the tape late with no word on early guidance by press time.

However, the amount announced is a fraction of what the market had been expecting, a source said.

While there were signs of life from the primary market on Monday, the ETF buying frenzy that lifted the cash bond market by more than 2½ points the previous week came to an end.

While the secondary space was positive early, selling pressure took hold as the session progressed with the cash bond market closing the day down ¼ point.

Carnival Corp.’s senior notes, which had rallied as ETFs bid up the broader market, came crashing down on Monday with the capital structure off 1 to 2 points.

Citrix Systems Inc./Tibco Software Inc.’s 6½% senior secured notes due 2029 (B2/B) were also weaker in active trading.

Charter Communications, Inc. subsidiary CCO Holdings, LLC’s senior notes (B1/BB-) were also taking a hit with the notes down 1 to 3 points following last Friday’s earnings report.

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