Primary window narrows; secondary gives back gains; Digicel jumps; Regional Care drops

By Paul A. Harris and Abigail W. Adams

Portland, Me., Dec. 4 – The domestic primary market was again dormant on Tuesday as equity markets plummeted and the 10-year treasury yield curve continued to flatten.

Many have questioned if new deal activity in 2018 is all but over with the window of opportunity for new issuance continuing to narrow.

However, some remain hopeful new paper will materialize before the books are closed on 2018.

While Tuesday marked a brutal day for equities, the high-yield secondary space weathered the storm.

The market was down 1 point on Tuesday after a 1 point gain on Monday, leaving the market largely unchanged from Friday’s close, a market source said.

Crude oil futures saw a volatile session on Tuesday but ended the day in positive territory with all eyes on the upcoming OPEC meeting and what it will mean for crude oil futures.

California Resources Corp.’s 8% senior notes due 2022 traded down in high volume activity on Tuesday as crude oil wavered between gains and losses.

Digicel Group Ltd.’s junk bonds were among the major gainers of Tuesday’s session after the Kingston, Jamaica-based mobile phone operator amended its exchange offer.

RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc.’s 9 ¾% senior notes due 2026 (Caa1/CCC+) were also major volume movers on Tuesday with the notes again dropping below par after breaking par during Monday’s session.

© 2015 Prospect News.
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