Secondary space soft; Graphic Packaging holds; Zayo, HCA weaken; Nabors trades off

By Paul A. Harris and Abigail W. Adams

Portland, Me., Feb. 24 – The domestic high-yield primary market was silent on Monday as coronavirus-induced volatility rocked markets.

The risk-off attitude that caused investors to flee equities in search of safe havens pervaded the secondary space with the market in general down 1 to 2 points, sources said.

While the market was soft, volume was light, the pace was orderly, and the secondary space was generally stable, a source said.

Despite their tight pricing and the market conditions, Graphic Packaging’s 3½% senior notes due 2028 (Ba2/BB+) were holding on to their slight premium.

However, some of the recent megadeals to price were not faring as well.

After a mixed performance, both of Zayo Group Holdings Inc.’s recently priced tranches were below par.

HCA Healthcare, Inc.’s 3½% senior notes due 2030 (Ba2/BB-/BB) continued their downward trajectory in active trading.

With crude oil futures down almost 4% on Monday, the energy sector was particularly hard hit.

Nabors Industries junk bonds were trading off between 1 to 3 points, sources said.

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