Junk primary returns with Royal Caribbean, Sensata, Darling drive-bys; Avaya falls further

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 15 – Three issuers priced single-tranche dollar-denominated drive-by junk bond deals on Monday for a combined face amount of $2 billion.

Meanwhile, it was an uneventful day in the secondary space with the cash bond market either side of unchanged in light volume following a three-week rally that saw spreads tighten by almost 100 basis points.

All eyes were on the primary market as the secondary waited for new paper to jolt activity in the space.

Royal Caribbean Group’s 5 3/8% senior notes due 2027(B3/B), which rank among the worst performing deals of 2022, gave back some of the gains made in the recent market rally on the back of a Monday offering.

Darling Ingredients, Inc.’s 6% senior notes due 2030 (Ba3/BB+), which rank among the best performing deals of 2022, were weaker following the pricing of its add-on.

Avaya Holdings Corp.’s 6 1/8% senior secured notes due 2028 (Caa2/CCC-) continued to fall in active trading on going concern warnings.

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