Endo International notes volatile; Carnival, Royal Caribbean lower; Weatherford down

By Cristal Cody

Tupelo, Miss., June 23 – Endo International plc’s 7½% senior secured notes due 2027 traded nearly 10 points lower in volatile secondary action on Thursday.

The bonds reversed course before the day came to an end and went out about 1 point higher.

The pharmaceuticals manufacturer’s 6 1/8% senior secured first-lien notes due 2029 also picked up more than 1 point during the session.

Distressed corporate secondary activity was lighter with heavier supply in emerging markets issues and in bonds from Carnival Corp. and Royal Caribbean Cruises Ltd., a source said.

Carnival’s and Royal Caribbean’s paper softened as trading intensified ahead of Carnival’s second-quarter earnings release on Friday, according to market sources.

Carnival’s notes declined about ¼ point to ¾ point on nearly $100 million of volume, while Royal Caribbean’s 5½% notes due 2028 (B2/B) dropped ¾ point to 72¾ bid on $15 million of paper traded on Thursday, a source said.

Financial markets mostly ended stronger on the day with stock indices all higher. The S&P 500 was up 0.95% and the Nasdaq climbed 1.62%.

The iShares iBoxx High Yield Corporate Bond ETF finished up 53 cents at $74.51.

Bonds in the oil and gas space were mostly under pressure as oil prices retreated.

Crude oil was down about $2 on Thursday.

West Texas Intermediate crude oil benchmark futures for August deliveries settled down $1.92 to $104.27 a barrel, off more than $5 a barrel this week.

Weatherford International plc’s 8 5/8% notes due 2030 (B3/B-) were quoted down 1¾ points at 87 bid on Thursday. The oilfield services company’s issue saw $7 million of paper traded, a source said.

Meanwhile, Plains All American Pipeline, LP’s 6 1/8% series B fixed-to-floating rate cumulative redeemable perpetual preferred units (Ba2/BB/BB) traded about 1½ points higher by the day’s end.

In other market action, S&P Global Ratings said in a report on Thursday that the number of issuers rated CCC+ and lower in the United States and Canada rose to 135 in May from 133 in April.

The increase was due to downgrades that were led by the health care, retail and restaurant sectors.

Endo bonds mixed

Endo subsidiary Par Pharmaceutical Inc.’s 7½% senior secured notes due 2027 (Caa2/CCC) sank 9¾ points to 65 bid on Thursday, a market source said.

Volume was strong on $10 million of paper changing hands.

The notes were seen recovering before the day’s end, going out up about 1 point at 75 bid.

Meanwhile, Endo Luxembourg Finance Co. Sarl’s 6 1/8% senior secured first-lien notes due 2029 (Caa2/CCC) traded over 1 point higher at a print of 74.93 on $10 million of secondary volume on Thursday.

The Dublin-based pharmaceuticals manufacturer’s bonds have been under pressure since May on weak first-quarter earnings and a forecasted second-quarter loss.

Plains All American up

Plains All American Pipeline’s 6 1/8% series B fixed-to-floating rate cumulative redeemable perpetual preferred units (Ba2/BB/BB) went out about 1½ points higher at 72½ bid, a source said.

Trading action was on the light side with $1 million of reported volume.

The Houston-based natural gas and crude oil transporter’s issue has declined more than 13 points since the start of the year.

Distressed index drops

Returns in the S&P U.S. High Yield Corporate Distressed Bond index slid on Wednesday.

One-day total returns declined to minus 1.11% from 0.28% on Tuesday, the week’s first session after the Juneteenth holiday.

Month-to-date total returns dropped to minus 5.62% from minus 4.56% on Tuesday.

Year-to-date index returns were down at minus 19.31% versus minus 18.41% in the week’s first session.

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