HUB prices junk megadeal; CSC, Caliber outperform; Spirit rebounds; Radiology jumps

By Paul A. Harris and Abigail W. Adams

Portland, Me., Jan. 19 – HUB International Ltd. brought the curtain down on the biggest week in the junk primary market since mid-November with a megadeal.

Meanwhile, the secondary space closed the week flat with the cash bond market either side of unchanged as the selling pressure from early in the week continued to wane, a source said.

While strong retail sales figures from early in the week caused the market to dial back its rate-cut expectations, the consumer sentiment data on Friday fed into the Goldilocks scenario of rate cuts without a recession.

New paper and topical news continued to move the market with the deals to price during Thursday’s session logging strong gains in the aftermarket.

Altice USA Inc. subsidiary CSC Holdings, LLC’s 11¾% senior guaranteed notes due 2029 (B2/B) and Caliber Collision’s 7 5/8% senior secured notes due 2032 (B3/B) both broke above a 101-handle in heavy volume.

Outside of new issues, Spirit Airlines Inc.’s 8% senior secured notes due 2025 (B2) broke their death spiral on Friday with the notes climbing double digits as the airline pushes for an appeal to the antitrust verdict that blocked JetBlue’s acquisition of the company.

Radiology Partners Inc.’s senior notes also made outsized moves to the upside after the company announced a series of refinancing transactions that included an exchange offer for the notes.

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