Altice/CSC Holdings levels off in junkland; Staples, Adept Health up on earnings

By Paul A. Harris and Abigail W. Adams

Portland, Me., Feb. 27 – It was “crickets” in the high-yield primary market on Tuesday, although there was a press release concerning a $200 million tap of Hamilton, Bermuda-based Borr Drilling Ltd./Borr IHC Ltd.’s 10% senior secured notes due Nov. 15, 2028.

As to why the market went generally quiet after Monday’s $2.75 billion burst of drive-by action, a trader pointed to the J.P. Morgan 2024 Global High Yield & Leveraged Finance Conference, underway through Wednesday in Miami, which always commands a good deal of the market’s attention.

However, in the past JPMorgan left-books drive-by deals have actually surfaced during the conference.

While the deals to price the previous session fell flat in the aftermarket, topical and earnings-related news continued to spark large price movements.

From recent deals, Wesco Distribution, Inc.’s two tranches of senior notes (Ba3/BB/BB+) and Builders FirstSource, Inc.’s 6 3/8% senior notes due 2034 (Ba2/BB-) were wrapped around their issue prices in heavy volume with the tight pricing leaving the notes little room for movement.

Reacting to topical news, Altice USA Inc. subsidiary CSC Holdings LLC’s senior notes were finding their levels in active trade on Tuesday after surging the previous session on news Charter Communications was considering a takeover bid.

Earnings also sparked large movements to the upside with AdaptHealth LLC’s 5 1/8% senior notes due 2030 (B1/B) jumping 4 points and Staples Inc.’s senior notes adding 1 to 4 points on positive results.

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