Junk primary market caps active week with $2.55 billion; broadcaster sell-off spreads

By Paul A. Harris and Abigail W. Adams

Portland, Me., Feb. 9 – In an active Friday session two junk bond issuers priced three dollar-denominated tranches to raise a total of $2.55 billion.

Meanwhile, the secondary space closed the week on firm footing with the cash bond market notching modest gains to eke out a positive weekly return, a source said.

New issues remained the area where investors were putting money to work although the performances of new and recent deals were becoming increasingly credit-specific.

Consolidated Energy Finance SA’s 12% senior notes due 2031 (B2/BB-/BB-) held on to the strong gains made on the break in active trade on Friday with the juicy yield helping to drive the aftermarket performance.

However, AssuredPartners, Inc.’s 7½% senior notes due 2032 (Caa2/CCC+) continued to lose ground in heavy volume.

Outside of recent issues, broadcasters remained under pressure with several names in the sector lower as markets assess the impact of the new ESPN, Fox and Warner Bros. sports streaming partnership.

Gray Television, Inc.’s senior notes (Caa1/B) and E.W. Scripps Co.'s senior notes continued to fall after heavy selling earlier in the week.

Sinclair Broadcast Group, Inc.’s 4 1/8% senior secured notes due 2030 (Ba3/BB-) and Tegna Inc.’s 4 5/8% senior notes due 2028 (Ba3/BB) were also pushed lower in active trade on Friday.

© 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.