Neogen on tap; junk bond energy names under pressure; Carvana volatile

By Paul A. Harris and Abigail W. Adams

Portland, Me., July 5 – A new deal surfaced in junkland for Wednesday business.

Neogen Corp. is planning to price a $350 million offering.

Meanwhile, it was another volatile day in the secondary space with the cash bond market opening the first full trading week of the second half of 2022 with losses but closing the day unchanged.

The cash bond market was off ¼ point early in the session but ended the day largely flat with the stability in Treasuries helping to lift the secondary space, a source said.

The 10-year Treasury yield continued to come in from its peak with the yield settling at 2.805% on Tuesday.

While declining Treasury yields were helping to lift rate-sensitive names, recession concerns continued to plague the market with plunging crude oil futures pressuring the energy sector.

Callon Petroleum Co.’s 7½% senior notes due 2030 (B3/B/B+) continued to trend lower on Tuesday.

Carnival Corp.’s 10½% senior notes due 2030 (B2/B) remained under pressure with cruise line operators beginning to serve as a de facto recession indicator.

Carvana Co.’s high-beta 10¼% senior notes due 2030 (Caa2/CCC) were volatile alongside the broader market with the notes down early in the session but closing the day with gains.

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