Junk: Talen prices; Benteler holds gains; Cleveland-Cliffs active; Six Flags falls further

By Paul A. Harris and Abigail W. Adams

Portland, Me., April 28 – The domestic high-yield primary market cleared one deal on Friday with one more remaining in the market with pricing expected towards the latter end of next week.

Talen Energy Supply, LLC priced an upsized $1.2 billion issue of seven-year senior secured notes (Ba3/BB/BB+) after the deal underwent covenant changes with the notes breaking strong in the aftermarket.

Heartland Dental, LLC remains in the market with a $500 million offering of five-year senior secured notes (B2/B) with pricing expected in the mid-to-late week ahead.

Meanwhile, it was another strong day in the secondary space with the cash bond market adding another ¼ point as a risk-on sentiment returned amid continued strength in equities, a source said.

“There are a decent amount of buyers today,” the source said.

New and recent issues remained in focus with a mixed performance in the aftermarket.

Benteler International AG’s new 10½% senior secured notes due 2028 (Ba3/BB-) held on to the strong gains made after rocketing on the break.

However, Six Flags Entertainment Corp.’s new 7¼% senior notes due 2031 (B3/B) continued to succumb to selling pressure with the notes falling further below their discounted issue price.

Cleveland-Cliffs Inc.’s recently priced 6¾% senior guaranteed notes due 2030 (Ba3/BB-/BB-) continued to see active trade on Friday although the notes remained on a 97-handle.

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