Primary, secondary junk markets quiet; CQP hard to find; liquid issues trade

By Paul A. Harris and Abigail W. Adams

Portland, Me., May 28 – The new issue market was dormant heading into the holiday weekend with the coming week expected to also be quiet, sources said.

The new issue calendar was empty at Friday’s close with the summer doldrums appearing to take effect.

Meanwhile, the secondary space was equally quiet with few names on the tape and little movement in the names that did trade.

CQP Holdco LP/BIP-V Chinook Holdco LLC’s recently priced 5˝% senior secured notes due June 2031 (expected ratings B2/B) were hard to find with sources struggling to find quotes for the notes, which priced as a true private placement.

The activity that did exist in the secondary space was relegated to large, liquid issues.

However, there was little movement in price in the notes that did trade with traders essentially just pushing the notes around, a source said.

Allied Universal’s 4 5/8% senior secured notes due 2028 (B2/B) and the 6% senior notes due 2029 (Caa1/CCC+) were among the most active issues in the secondary space with $10 million in reported volume heading into the early close.

The tranches were little changed with the unsecured notes continuing to outperform the secured notes.

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