Cetera prices; Forward Air, airlines, Ardagh under pressure; junk funds lose $942 million

By Paul A. Harris and Abigail W. Adams

Portland, Me., Oct. 26 – The domestic high-yield primary market cleared one deal on Thursday, leaving one remaining on the forward calendar although its future is unclear.

Cetera Financial Group Inc. priced a $700 million issue of Aretec Escrow Issuer 2 Inc. 10% senior secured notes due Aug. 15, 2030 (B2/B) at par.

Meanwhile, there have been no updates on the Global Aircraft Leasing Co., Ltd. and Global Sea Containers II Ltd. $1.95 billion offering of five-year senior PIK toggle notes (Ba2//BB-), which has been in the market for more than two weeks.

Forward Air Corp.’s 9½% senior secured notes due 2031 were lower in heavy volume after the company announced it may terminate its acquisition of Omni Newco LLC, which proceeds from the sale of the notes was to support.

Hawaiian Airlines’ 5¾% first-lien senior secured notes due 2026 and Spirit Airlines, Inc.’s 8% senior secured first-lien notes due 2025, issued by Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., were under pressure with the airlines the latest to disappoint with earnings.

However, Ardagh Holdings USA Inc.’s senior notes claimed the title of the largest loser of Thursday’s session with its secured notes down 2 points and its unsecured notes plunging 7 points post-earnings.

High-yield mutual funds and exchange-traded funds saw $942 million leave the space in the week through Wednesday’s close.

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