Howmet prices; MultiPlan new HY bonds at a premium, existing notes down; Rayonier softer

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 18 – One deal cleared the high-yield domestic primary market on Wednesday, from Howmet Aerospace Inc.

While the secondary space was flat for the majority of the session, it was soft heading into the market close as the release of the Federal Reserve minute notes sparked a sell-off in risk assets.

There has been widespread speculation among market participants about the timing of the Federal Reserve’s tapering of bond purchases.

The minute notes from the latest meeting revealed a general consensus that the tapering could begin in the next few months.

While the market closed the day on soft footing, the lack of liquidity in the space prevented any significant price swings, which has been a theme over the past few weeks.

New and recent issues continued to dominate the tape.

MultiPlan Corp.’s new 5½% senior secured notes due 2028 (Ba3/B+) were in focus with the notes trading with a healthy premium.

However, the company’s existing 5¾% senior notes due 2028 (B3/B-) continued to move lower in active trading.

American Axle & Manufacturing, Inc.’s 5% senior notes due 2029 (B2/B+) and Southwestern Energy Co.’s 5 3/8% senior notes due 2030 (Ba3/BB-/BB) remained active although with little movement in price.

Outside of recent issues, Rayonier A.M. Products Inc.’s 5½% senior notes due 2024 were lower in active trading.

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