Four junk issuers sell $3 billion; MidCap breaks 103, Primo Water on a par-handle

By Paul A. Harris and Abigail W. Adams

Portland, Me., April 22 – Amid a steady news flow in the high-yield primary market on Wednesday four issuers raised a combined $3 billion, each one pricing a single dollar-denominated tranche of junk bonds.

Meanwhile, it was a dull day in the secondary space with little activity outside of new issues, a source said.

While the secondary space opened the day unchanged, it softened as risk assets sold off following President Biden’s announced plan to nearly double the capital gains tax.

The deals to price during Wednesday’s session had mixed performances in the secondary space.

Primo Water Holdings Inc.’s 4 3/8% senior notes due 2029 (B1/B) had a lackluster reception in the secondary space.

While they were trading with a slight premium to their issue price, they remained on a par handle, a source said.

MidCap Financial, LLC’s 6½% senior notes due 2028 (Ba3/B+/BB) continued to gain after a strong break with the notes breaking past 103 in active trading.

Meanwhile, high-yield mutual and exchange-traded funds continued to experience outflows with $1.33 billion leaving the space through Wednesday’s close, according to the Refinitiv Lipper Fund Flow report

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