Junk softens after jobs report; Charter below par; Advisor at a premium; Carvana gains

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 5 – The domestic high-yield primary market remained dormant on Friday after the previous session’s $2 billion burst of issuance.

Patagonia Holdco LLC cleared the active forward calendar on Friday as it withdrew from the market a struggling $500 million offer of secured notes (B1/B+), and shifted the proceeds to its concurrent bank loan.

Meanwhile, the junk secondary space softened on Friday as the market digested July’s non-farm payroll report, which blew past expectations.

However, a weak open was met with opportunistic buying and the cash bond market closed well off the lows of the day and launched August with a weekly gain.

The first new paper of August was mixed in secondary trading with Charter Communications, Inc. subsidiary CCO Holdings, LLC’s newly priced 6 3/8% senior notes due 2029 (B1/BB-) falling below par while Advisor Group Holdings, Inc.’s 8 5/8% senior secured notes due 2027 (B2/B-/B) held onto the strong gains made after breaking for trade.

In other news, Carvana Co.'s senior notes (Caa2/CCC+) added to their strong pre-earnings gains with the report better than expected.

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