SPX Flow junk offer eyed; travel lower, energy up on surging oil prices; Nine Energy zooms

By Abigail W. Adams

Portland, Me., March 8 – The domestic high-yield primary market remained dormant on Tuesday with only one offering on the forward calendar.

Redwood Star Merger Sub. Inc.’s (SPX Flow Inc.) $570 million offering of eight-year non-call three-year senior notes (Caa2/CCC) remained the only deal on deck.

Meanwhile, the secondary space was softer on Tuesday after opening the day largely flat with the war in the Ukraine, surging crude oil futures, inflation and the Federal Reserve’s meeting next week continuing to weigh on the market.

“There’s little to no bid in the market,” a source said.

Surging crude oil futures continued to have an inverse impact on the secondary space with travel names again moving lower while energy credits outperformed.

Losses continued to mount for Carnival Corp.’s and American Airlines, Inc.’s junk bonds on Tuesday.

However, oil refiner PBF Energy Inc.’s junk bonds made large gains during the session.

Nine Energy Service, Inc.’s 8¾% notes due 2023 (Caa3/D) were the largest gainer of the day with a better-than-expected earnings report and rising oil prices catapulting the notes up more than 11 points.

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