PBF Energy outperforms in HY secondary; Sylvamo gains; Royal Caribbean improves

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 27 – The domestic high-yield new issue market remained quiet on Friday and is expected to remain that way in the run-up to Labor Day.

While sources expect an active September post-Labor Day, only one issuer has formally announced their intention to price an offering.

Meanwhile, the secondary space shot higher amid thin volume following Federal Reserve Chair Jerome H. Powell’s highly anticipated speech regarding the future of the Fed’s monetary policy.

However, while the market was strong, already-thin volume slowed to a trickle on Friday.

PBF Holding Co. LLC’s 9¼% senior secured notes due 2025 were in focus with the notes continuing to march higher.

The petroleum refiner’s capital structure outperformed over the past week with its junk bonds gaining 7 to 15 points amid an expected loosening of biofuel blending mandates.

While the deal struggled during bookbuilding, Sylvamo Corp.’s recently priced 7% senior notes due 2029 (B1/BB) caught a bid with the notes up almost 4 points on the week.

Royal Caribbean Cruises Ltd.’s 5½% senior notes due 2026 (B2/B) continued to improve on Friday with the notes climbing higher after breaking above par earlier in the week.

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