Studio City brings new paper; secondary junk improves but BWICs abound ahead of CPI report

By Paul A. Harris and Abigail W. Adams

Portland, Me., Feb. 9 – One dollar-denominated junk bond deal cleared the primary market on Wednesday, leaving the forward calendar empty.

Studio City Co. Ltd. priced an upsized $350 million issue of five-year senior secured notes (Ba3/B+) in a deal that played to heavy demand from Asian accounts and saw a strong break.

Meanwhile, the secondary space continued to improve on Wednesday as Treasury markets stabilized and equities extended their rally.

However, the tone in the high-yield market remained muted as market players awaited the latest Consumer Price Index report set for release on Thursday.

While opportunistic buying drove the market up about ½ point, Bids-Wanted-In-Competition lists still abounded with selling pressure lingering, a source said.

Many were awaiting the CPI report to determine if the rally had staying power.

New and recent issues continued to dominate the tape.

News Corp.’s 5 1/8% senior notes due 2032 (Ba1/BB+) were in focus with the notes jumping 1 point during Wednesday’s session.

Athenahealth’s (Minerva Merger Sub, Inc.) 6½% senior notes due February 2030 (Caa2/CCC/CCC+) continued their upward momentum with the notes up another ½ point alongside the broader market.

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