Starwood shelves deal; dog days hit primary; J.C. Penney falls more; WeWork broaches par

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 17 – After vigorous new issue activity in the early part of the week, the dog days of summer appear to have taken hold of the new issue market with no new issue activity expected prior to Labor Day, sources said.

Starwood Property Trust, Inc. shelved its offering of $300 million five-year senior bullet notes (Ba3/BB) after pricing moved out of its targeted range.

Meanwhile, it was a “ho hum” day in the secondary space, a market source said, with activity surrounding the new paper to price over the past week settling.

Recent deals from Denbury Resources Inc., Frontdoor, Inc. and CURO Group Holdings Corp. were largely unchanged in light trading volume on Friday.

J.C. Penney Co., Inc.’s junk bonds continued to trade down after a large second-quarter earnings miss and a ratings downgrade.

WeWork Cos. Inc.’s 7 7/8% senior notes due 2025 (Caa1/B+/BB-) made a large recovery after reporting second-quarter financial results.

While the notes dropped slightly from Thursday’s levels, they broached their issue price over the past week for the first time since pricing in late April.

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