Brightline, ION price junk; Encino, Vail end day unchanged; funds add $604.3 million

By Abigail W. Adams

Portland, Me., April 25 – The high-yield primary market continued to churn out offerings on Thursday with two deals clearing the calendar despite a heavy day for the market.

Brightline East LLC priced an upsized $1.325 billion offering of senior secured notes due Jan. 31, 2030 (B/B), and ION Corporates priced its two-tranche dual-currency offering of five-year senior secured notes (B2/B).

While the deals played to strong demand during bookbuilding, they were weak on the break with Brightline dropping below issue price and ION’s dollar-denominated tranche flat.

The activity came on a heavy day for the market with the latest GDP print throwing cold water on the goldilocks, soft-landing scenario the market had widely come to anticipate.

With the GDP print coming in much softer than expected and still reflecting elevated inflation, a new scenario was beginning to take shape.

“Can anyone say stagflation?” a source said.

The market’s attention remained focused on new issues.

While Encino Acquisition Partners Holdings, LLC’s 8¾% senior notes due 2031 (B3/B-/B) and Vail Resorts, Inc.’s 6½% senior notes due 2032 (Ba3/BB) were weak early in the session, they quickly eliminated their losses and closed the day unchanged.

High-yield mutual funds and exchange-traded funds saw inflows of $604.3 million in the week through Wednesday’s close after last week’s $3.75 billion outflow.

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