Primary quiet; secondary soft on rate risk; LifePoint deflates; Worldpay below par

By Abigail W. Adams

Portland, Me., Oct. 2 – The domestic high-yield bond primary market was quiet early Monday after capping the busiest month of the year in September with $22.38 billion pricing in 30 deals.

The torrent of activity came amid a dramatic widening in spreads, which have pushed out about 35 basis points since the Fed’s Sept. 20 announcement.

Meanwhile, cracks were beginning to show in the aftermarket performance of several recent deals.

“The air is escaping,” a source said.

LifePoint Health Inc.’s new 11% senior secured notes due 2030 (B2/B) launched the day strong but closed below par.

GTCR W-2 Merger Sub LLC’s 7½% senior secured notes due 2031 (Ba3/BB/BBB-) backing the buyout of Worldpay again broke below par with the notes closing the day on a 99-handle.

Shelf Drilling Holdings Ltd.’s 9 5/8% senior secured notes due 2029 (B3/B-/B) were also under pressure with the notes giving back all gains since pricing and closing the day wrapped around their discounted issue price.

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