Ciena prices to strong demand; secondary junk firms; Starwood up; Ziggo improves

By Paul A. Harris and Abigail W. Adams

Portland, Me., Jan. 11 – The new issue market had $625 million clear in two junk-rated dollar-denominated tranches on Tuesday, including an oversubscribed offer from Ciena Corp.

Meanwhile, the secondary space remained volatile on Tuesday with the market down 1/8 point early in the session but rallied alongside equity and Treasury markets to close the day with a ¼ point gain.

While the 10-year Treasury yield hit 1.85% shortly before 11 a.m. ET, it closed the day at 1.742%.

The rally in the space was a “knee-jerk reaction” to Federal Reserve chair Jerome Powell’s confirmation hearing and assurance that inflation would be brought under control, a source said.

However, despite the volatility in the space and outflows which topped $1.6 billion on Friday, there is still plenty of money to be put to work with new issues the focal point, a source said.

Starwood Property Trust, Inc.’s 4 3/8% senior sustainability-linked notes due 2027 (Ba3/BB+) were in focus with the notes trading with a healthy premium to their issue price.

Several recent deals that struggled amid weak market conditions improved on Tuesday.

VodafoneZiggo’s 5% senior secured sustainability-linked notes due 2032 (B1/B+/BB) were on the rise after falling flat their initial days in the market.

Royal Caribbean Cruises Ltd.’s 5 3/8% senior notes due 2027 (B2/B) popped above par after spending the last few sessions under water.

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