Junk primary busier; Vistra gains in aftermarket; DirecTV higher; WeWork notes soften

By Paul A. Harris and Cristal Cody

Tupelo, Miss., Dec. 7 – The primary junk bond market was looking alive on Tuesday with an accelerated pricing, a drive-by preferred stock deal and the beginning of new business.

In the high-yield secondary market and fresh off the presses, Vistra Corp.’s upsized $1 billion of 7% fixed-rate reset green perpetual preferred stock (Ba3/B/BB-) that priced at par during the Tuesday session climbed in aftermarket trading.

“It’s up at par and a half right now,” a source said.

Meanwhile, the 5 7/8% senior secured notes due Aug. 15, 2027 (Ba3/BB/BBB-) that DirecTV Holdings LLC and DirecTV Financing Co. Inc. reopened on Monday saw heavy secondary action Tuesday with the notes up about ½ point to ¾ point.

The issue was “fairly active,” a market source said.

WeWork Cos. LLC’s 7 7/8% senior notes due 2025 (CCC+/CC) were under pressure over the session as the New York City-based flexible office share company commenced a secondary sale of its 5% senior notes due 2025.

Market tone remained stronger Tuesday with the Nasdaq over 3% higher by the close, measured volatility down nearly 20% and oil prices adding over $5 from the first two sessions of the week.

The iShares iBoxx High Yield Corporate Bond ETF rose 47 cents to close at $86.84 after picking up 36 cents Monday.

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