Junk: Xerox pressured post-earnings; Hertz down on macro risks; Staples jumps on unit sale

By Paul A. Harris and Abigail W. Adams

Portland, Me., April 23 – Observance of Passover, thinning Wall Street’s ranks, made for a quiet day in the high-yield new issue market, a trader said.

Two deals on the active calendar are expected to price before the end of the week.

Brightline East LLC is running a full roadshow for a $1.25 billion offering of senior secured notes due Jan. 31, 2030. Initial guidance has the notes coming to yield 10% to 11%, sources say.

And ION Corporates is marketing a $730 million equivalent two-part offering of Helios Software Holdings, Inc. and ION Corporate Solutions Finance Sarl five-year senior secured notes (B2/B), including a tranche of dollar-denominated notes with initial guidance in the 9% area.

Meanwhile, the secondary space continued to firm on Tuesday with the market up another 1/8 to ¼ point to nearly eliminate its losses from the previous week.

Xerox Holdings Corp.’s 8 7/8% senior guaranteed notes due 2029 (B1/BB) were under pressure after an earnings miss with the notes dropping below issue price for the first time since hitting the market.

Hertz Corp.’s senior notes (Caa1/B+) were also lower in active trade after the company announced an amendment to its credit agreement as a preemptive measure due to macro risk.

Staples Inc.’s 10¾% senior notes due 2028 (Caa2/CCC) were among the largest gainers of Tuesday’s session after the office supplies retailer announced the sale of a business unit.

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