LABL, Option Care price in junkland; Kosmos on a 101-handle; Carnival comes in

By Abigail W. Adams and Paul A. Harris

Portland, Me., Oct. 22 – Two issuers priced a total of three junk-rated, dollar-denominated tranches with an overall face amount of $1.46 billion in the domestic high-yield primary market on Friday.

LABL, Inc. priced a downsized $960 million two-tranche offering and Option Care Health, Inc. priced a $500 million issue of eight-year senior notes (B3/B-).

The week ahead also promises to be busy with Lifescan Global Corp.’s $800 million two-part offering and CA Magnum Holdings, which has $1.01 billion of five-year secured notes on deck.

Meanwhile, the secondary space opened the day unchanged but grew soft as the session progressed with ETF selling pressuring the overall market, sources said.

The cash bond market was down about 1/8 point, a source said.

However, the energy sector remained strong with crude oil futures continuing their climb.

While volume in the name was light, Kosmos Energy Ltd.’s 7¾% senior notes due 2025 (B3/B+/B) were trading up to a 101-handle.

Summit Midstream Holdings LLC and Summit Midstream Finance Corp.’s 8½% senior secured notes due 2026 (B3/BB-/B+) remained active. While the notes were trading off their highs heading into the close, they maintained a large premium to their discounted issue price.

Carnival Corp.’s 6% senior notes due 2029 (B3/BB-/B+) were also active with the notes giving back some of their gains in the high-volume activity.

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