Junk secondary lifted post-CPI; Citrix hits new heights; Ford gains; Atlas, Brinker gap up

By Paul A. Harris and Abigail W. Adams

Portland, Me., July 12 – The junk bond new issue market is winding down on euro deals and ready for some dollar issuance, with the first dollar deal for July prepped for Thursday pricing.

Meanwhile, the secondary space was hot on Wednesday with buyers flooding the market on the heels of a Consumer Price Index report that showed the slowest pace of inflation since early 2021.

Tech names were up as much as 2 points with Cloud Software Group Holdings Inc.’s (Citrix) 9% second-lien notes due 2029 (Caa2/B-) hitting their highest level since pricing and Citrix’s 6½% senior secured first-lien notes due 2029 (B2/B) reapproaching an all-time high.

Ford Motor Credit Co. LLC’s senior notes (Ba2/BB+) also made strong gains with the notes among the rate-sensitive names to benefit from the move in Treasuries.

Heavily shorted names in the market were also on the rise with Brinker International, Inc.’s recently priced 8¼% senior notes due 2030 (B1/BB-) gapping up, which sources suspect may be the result of short-covering.

Rand Parent, LLC’s 8½% first-lien senior secured notes due 2030 (Ba1/BB/BB+), backing the buyout of Atlas Air, also gapped up with the notes now trading at their highest level since late April.

© 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.