Frontier adds; junk rally continues; Camelot higher; Carnival sinks; T-Mobile active

By Paul A. Harris and Abigail W. Adams

Portland, Me., July 21 – The domestic high-yield primary market had one small add-on deal price during Thursday’s session.

FTAI Infra Escrow Holdings, LLC priced a $50 million add-on to its 10½% senior secured notes due June 1, 2027.

Market players had been anticipating a $3 billion deal backing the buyout of Tenneco Inc. by Apollo Global Management Inc.

However, the deal was heard to have been pushed until post-Labor Day leaving Patagonia HoldCo LLC’s $500 million offering of seven-year senior secured first-lien notes (B1/B+) the sole deal on the forward calendar.

Meanwhile, it was another strong day for the secondary space with the cash bond market rising another 3/8 to ½ point as buyers return to the space.

The market is reassessing recession as a base case scenario with earnings coming mostly inline or better than expected, a source said.

Camelot Return Merger Sub Inc.’s 8¾% senior secured notes due 2028 (B2/B), the first new issue since early July, was trading at a large premium to the discounted issue price.

While the broader market continued to rally, Carnival Corp.’s capital structure was again under pressure following a $1 billion equity raise.

T-Mobile US, Inc.’s senior notes were slightly weaker on Thursday after getting lifted the previous session by a Moody’s Investors Service upgrade of the company to investment grade.

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