High-yield primary quiet; secondary tone firms; DaVita falls; Power Solutions active

By Abigail W. Adams

Portland, Me., June 21 – It was another quiet day for the high-yield primary market with no issuers stepping forward despite a firmer tone in the secondary space.

Sources had expected to see some primary market activity given the strength of risk assets on Tuesday.

However, the cost of financing remains a deterrent for potential issuers some of whom are starting to inquire about equity-linked financing as a lower cost alternative, sources said.

Meanwhile, the secondary space firmed on Tuesday as the market continues to digest the events of the previous week.

The cash bond market gained ¼ point although volume remained light, sources said.

While the overall market was firm, DaVita Inc.’s 4 5/8% senior notes due 2030 (Ba3/B+) led losses in high volume activity with a recent Supreme Court decision pressuring dialysis providers.

Power Solutions’ (Panther FB Aggregator 2 LP) 8½% senior notes due 2027 (Caa1/CCC+) continued to see heavy volume with the notes reclaiming some lost ground from the previous week.

Post Holdings, Inc.’s 4½% senior notes due 2031 (B2/B+) also regained its footing on Tuesday after hitting an all-time low in the previous week’s sell-off.

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