New York Community Bancorp notes improve, unit Flagstar down; Spirit Airlines up

By Cristal Cody

Tupelo, Miss., Feb. 8 – New York Community Bancorp, Inc.’s 8.332% fixed-to-floating rate subordinated notes due 2028 recovered some ground on Thursday.

The notes remained volatile since being downgraded to junk this week but were quoted higher at 77 bid on $10.25 million of volume.

The issue declined about 7 points on Wednesday to 75 bid.

Subsidiary Flagstar Bancorp, Inc.’s 4 1/8% fixed-to-floating rate subordinated notes due 2030 softened over 1½ points to 67 bid on $7 million of trading over the day, a source said.

Overall market tone remained mostly positive with indices eking out small gains.

“Up until the last week, rates had rallied nicely but they’ve turned around a bit,” a source said.

Spirit Airlines Inc.’s 8% senior secured notes due 2025 grabbed most of the attention in the distressed market over the session after the company reported earnings results and said it intends to press on with fighting to complete a merger with JetBlue Airways Corp.

The notes traded around 3¾ points to over 5¼ points better on more than $37 million of volume.

Spirit Airlines’ 8% senior secured notes due 2025 rose over 5¼ points to 72 bid in active trading that totaled over $23 million on Thursday, a market source said.

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