Carvana’s existing notes drop; Twitter gains continue; American Bath pops

By Paul A. Harris and Abigail W. Adams

Portland, Me., April 26 – Carvana Co.’s outstanding notes were among the largest losers in the junk bond secondary space on Tuesday with the notes down 1 to 2 points in heavy volume as the market awaited the used car e-commerce company’s latest offering.

As a backdrop, Tuesday marked another brutal day for equity markets with the Dow Jones industrial average down more than 2% and the Nasdaq Composite index down almost 4%.

However, the high-yield market was holding up well as equities crumbled, sources said.

While the CDX index was off almost 100 bps to mark its lowest close of the year, the cash bond market was relatively flat, sources said.

However, several issues were on the rise on Tuesday due to topical and earnings-related news.

Twitter, Inc.’s senior notes (Ba2/BB+) continued their upward momentum following Monday’s surprise takeover news.

American Bath Group LLC’s (CP Atlas Buyer, Inc.) 7% senior notes due 2028 (Caa2/CCC) outperformed on Tuesday with the notes jumping 5 points following earnings.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.