SPX Flow on tap; secondary sell-off intensifies; AAL under pressure

By Abigail W. Adams

Portland, Me., March 7 – The domestic high-yield primary market saw another quiet session as volatility continued to roil risk assets on Monday.

However, there were signs of life with one addition to the forward calendar.

Redwood Star Merger Sub. Inc. (SPX Flow Inc.) started a roadshow for a $570 million offering of eight-year non-call three-year senior notes (Caa2/CCC) that will run until March 17.

While the new-issue calendar has been largely sidelined by the volatility in the market, there are deals in the pipeline, sources said.

Some estimate new-deal volume to hit $5 to $7 billion in the coming week. However, issuers are waiting for the market to stabilize.

And there were no signs of stability during Monday’s session.

The secondary space opened the day down 1/8 to ¼ with selling intensifying as the session progressed. The market was down ¾ to 7/8 point heading into the market close, a source said.

The situation in the Ukraine, surging crude oil futures and its impact on inflation remained the primary focus of the market.

Airlines and travel names were under pressure amid skyrocketing crude oil futures.

American Airlines, Inc.’s junk bonds sank 2 to 5 points in active trading.

Carnival Corp.’s junk bonds were also taking a hit.

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