Venture Global, Global Aircraft deals eyed; junk heavy; Spirit AeroSystem, Frontier lifted

By Paul A. Harris and Abigail W. Adams

Portland, Me., Oct. 18 – The junk bond primary market put up a goose egg on Wednesday.

However, parties are at work on a pair of big deals that have been on trajectories which have them pricing before the end of the week.

Spiking risk-free rates – with 10-year government paper climbing six-plus points on Wednesday to close above 4.9% – have complicated the progress of the Global Aircraft Leasing Co., Ltd./Global Sea Containers II Ltd. $1.95 billion offering of five-year senior PIK toggle notes (Ba2//BB-), sources say.

Also in the market is a massive $4 billion two-part senior secured notes offer from Venture Global LNG Inc.

Meanwhile, it was a heavy day in the secondary space with the cash bond market falling another 3/8 to ½ point as Treasury yields reapproached multi-decade highs.

While the broader market was weak amid a reassessment of the macro climate, topical news drove large gains in the space.

Spirit AeroSystems Inc.’s beleaguered senior notes, which have been in a multi-month downtrend due to quality control issues, were the top gainers of Wednesday’s session following a production deal with Boeing.

Frontier Communications Holdings LLC’s senior notes also made large gains after activist investor Jana Partners revealed its stake in the company and its intention to push for a sale.

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