Carnival prices $4 billion offering; Yum! Brands weakens; AA drops; Sprint active

By Paul A. Harris and Abigail W. Adams

Portland, Me., April 1 – One megadeal cleared the domestic high-yield primary market on Wednesday, although the trade was far from typical.

Carnival Corp. priced an upsized $4 billion of 11½% three-year first-priority senior secured notes (Baa2/BBB-) on Wednesday.

While the notes were rated investment grade, the deal was handled by the high-yield desk and played to high-yield and distressed-debt accounts.

Meanwhile, the rally in the secondary space cooled on Wednesday as equities plunged at the start of the new quarter.

Credit spreads were again moving wider after a grim forecast for the expected toll of the coronavirus pandemic.

After skyrocketing out of the gate, Yum! Brands, Inc.’s newly priced 7¾% senior notes due 2025 (B1/B+) were slightly weaker on Wednesday.

American Airlines Group Inc.’s senior notes were again trading off after a multi-billion draw down from its revolving credit facilities.

Sprint Corp.’s senior notes were active and making nominal gains following the completion of T-Mobile’s hard fought for acquisition of the company.

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