ETF-buying lifts secondary; AMC, Carvana lifted pre-earnings; Spirit AeroSystems falls

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 3 – The high-yield new-issue market remained quiet on Wednesday, with another full week having passed since the most recent junk-rated, dollar-denominated issue cleared the market.

The Patagonia Holdco LLC $500 million offering of seven-year non-call-three senior secured first-lien notes (B1/B+) has clearly been struggling, sources say.

Meanwhile, it was another strong day in the secondary space with ETF-buying continuing to lift the broader market.

ETFs continued to circulate offers-wanted-in-competition lists as strong inflows continued.

“They’re adding to their positions,” a source said.

However, outside of ETF buying, trading volume in the secondary space remained thin with no new issuance to jolt activity.

Earnings remained in focus although reports continued to come in mixed.

Spirit AeroSystems, Inc.’s 4.6% senior notes due 2028 (Caa1/CCC+) were among the largest losers of Wednesday’s session following an earnings miss.

AMC Entertainment Holdings, Inc.’s senior notes were on the rise in active trading as optimism surrounding earnings grows.

Carvana Co.’s 10¼% senior notes due 2030 (Caa2/CCC+) also made strong gains with earnings slated for Thursday.

© 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.