Verallia downsizes; traders see secondary gains post-Fed news; Intelsat loses altitude

By Paul A. Harris and Stephanie N. Rotondo

Seattle, June 15 – Wednesday saw one new issue, Verallia Packaging SAS’ downsized €200 million add-on to the Horizon Holdings III SAS 5 1/8% senior secured notes due 2022.

After several sessions of declines, the secondary high-yield bond market was looking to regain ground on Wednesday.

“The last few days felt pretty weak,” a trader said. In midweek trading, “it did feel like some things kind of rebounded a little bit.

“I still think volumes are pretty limited,” he added.

The day’s gains came as the Federal Reserve said it was keeping interest rates steady for the time being, citing anemic job growth and concerns about the United Kingdom’s upcoming vote to possibly leave the European Union.

While it remains to be seen whether the central bank will raise rates in July, it did appear that more members were leaning towards just one hike this year, instead of the two previously forecast.

Despite that uncertainty, a trader said that the market’s more “on-the-run” names were trading well.

For instance, Frontier Communications Corp.’s 11% senior notes due 2025 ticked up nearly a point to 101˝, he said.

Western Digital Corp.’s 10˝% senior notes due 2024 were also firm, closing at 103˝. That compared to previous levels of 103, a trader said.

Bucking the day’s upward trend, a trader said Intelsat SA bonds were “getting beat up” in midweek trading.

© 2015 Prospect News.
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