Two junk bond issuers put up $1.2 billion; Vital Energy jumps; EquipmentShare.com active

By Paul A. Harris and Abigail W. Adams

Portland, Me., Sept. 19 – The junk bond primary market put up another $1.2 billion of new issuance on Tuesday, the same as Monday’s face amount, taking the week’s total of bonds sold to $2.4 billion.

Tuesday’s issuance came from a pair of single-tranche issuers.

Meanwhile, it was a soft day in the secondary space with the cash bond market shedding 1/8 point as the market braced for the Federal Open Market Committee’s Wednesday announcement, a source said.

There is a general consensus in the market that the Federal Reserve will again pause rate hikes.

However, the jury is still out for November and December with chair Jerome Powell’s press conference to be scrutinized for clues about the path forward.

While the broader market was risk-off ahead of the Fed, new and recent issues remained in focus.

Vital Energy, Inc.’s 9¾% senior notes due 2030 (B3/B) became the latest deal to buck the trend of new issuance hovering at slight premiums to their issue prices with the notes jumping in the aftermarket.

The company’s 10 1/8% senior notes due 2028 were also trading at a healthy premium to their reoffer price following an add-on.

EquipmentShare.com Inc.’s 9% second-lien senior secured notes due 2028 (B3/B-) were also active following an add-on with the notes trading at a premium to their reoffer price but below their previous trading level.

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