Junk secondary losses mount; McAfee, Scientific Games struggle; Prince holds premium

By Paul A. Harris and Abigail W. Adams

Portland, Me., Feb. 4 – The primary market was dormant on Friday as volatility again put the new issue market on hold.

Despite the rally in equities, the secondary space remained heavy on Friday as the 10-year Treasury yield crossed the 1.9% threshold following a better-than-expected jobs report.

While the high-yield market ended the day off of its lows, it still closed the day down 3/8 point, a source said.

New issues were struggling under the heavy market conditions.

Condor Merger Sub, Inc.’s (McAfee Corp.) 7 3/8% senior notes due 2030 (Caa2/CCC+) became the latest LBO deal to struggle in the aftermarket with the notes well below their issue price.

Scientific Games Holdings LP’s 6 5/8% senior notes due 2030 (Caa2/B/B) were also under water in active trading.

However, PMHC II, Inc.’s (Prince International Corp.) issue of 9% senior notes due 2030 (Caa2/CCC+) was an outlier with the notes closing the day at a premium to their issue price although they were well off the high of the day.

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