Norwegian sinks in heavy market; Medline hits new low; Lumen, Goodyear down post-earnings

By Abigail W. Adams

Portland, Me., Feb. 14 – The domestic high-yield primary market remained dormant on Monday as volatility continued to roil risk assets.

However, there is $5 billion to $7 billion in deals waiting in the wings if markets stabilize.

Losses continued to mount for the secondary space as geopolitical uncertainty surrounding the Ukraine and continued hawkish comments from St. Louis Fed President James Bullard rattled investors.

While the market ended the day off its lows, it still closed down about 1/8 point, marking the third consecutive day of losses for the space, sources said.

Selling pressure continued to stem from exchange-traded funds as outsized outflows continued.

Norwegian Cruise Line Holdings Ltd.’s secured and unsecured tranches both sank in active trading with the secured tranche dropping to a 97-handle while the unsecured tranche gave back its gains and sank below par.

Medline Industries’ already struggling senior notes hit their lowest level on Monday since hitting the secondary space.

Lumen Technologies’ senior notes continued their downward spiral with the 5 3/8% senior notes due 2029 (B2/BB-/BB) down more than 8 points since the company released earnings last Thursday.

Losses also continued to mount for Goodyear Tire & Rubber Co.’s senior notes with some issues also down 7 points since Thursday’s earnings release.

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