Junk sell-off intensifies; Royal Caribbean new, recent issues sink; Citrix moves lower

By Paul A. Harris and Abigail W. Adams

Portland, Me., Sept. 23 – The dollar-denominated primary market sat idle on Friday with global capital markets engulfed in volatility and price discovery underway in the speculative-grade bond market, sources said.

Connect Holding II LLC is slated to price its $1.865 billion offering of seven-year senior secured notes (B2/B/B+) early next week.

However, talk has widened, in part, due to the Citrix Systems Inc./Tibco Software Inc. $4 billion issue of 6½% senior secured notes due March 2029 (B2/B).

While Citrix’s 6½% notes initially performed well in the aftermarket, the notes cracked under heavy selling pressure on Friday with the deeply discounted notes falling below their issue price.

Royal Caribbean Cruises Ltd.’s recently priced tranches were in focus with the notes falling well below their issue price.

Royal Caribbean’s recently priced 11 5/8% senior notes due 2027 (B3/B) sank to a new low in heavy volume after reclaiming a 101-handle two sessions ago.

Ford Motor Co.’s 6.1% senior green notes due 2032 (Ba2/BB+) were hurting on Friday with the notes falling more than 4 points in active trade.

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