New junk paper comes from Delek; Builders FirstSource underwater; Sinclair lower

By Paul A. Harris and Abigail W. Adams

Portland, Me., Feb. 28 – Co-issuers Delek Logistics Partners, LP and Delek Logistics Finance Corp. represented the bulk of new dollar-denominated issuance in the junk bond market on Wednesday.

Meanwhile, it was a soft day in the secondary space with the latest GDP print coming in slightly below forecasts.

While weaker than forecast, the 3.2% growth rate was still a strong figure and did not spark major market movement, a source said.

However, the Personal Consumption Expenditure report due out on Thursday could be a high-vol. event if the Federal Reserve’s preferred inflation gauge comes in hotter than expected.

Some recent deals were struggling under the soft market conditions on Wednesday.

Builders FirstSource, Inc.’s 6 3/8% senior notes due 2034 (Ba2/BB-) sank underwater in heavy volume on Wednesday with the notes closing the day on a 99-handle.

Wesco Distribution, Inc.’s two tranches of senior notes (Ba3/BB/BB+) continued to weaken with the notes giving back nominal premiums gained on the break.

Outside of recent issues, Sinclair Broadcast Group, Inc.’s senior notes were off more than 1 point leading into earnings with market expectations for the broadcaster low.

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