USG, New Home drive by; Covey Park active; Pharmaceutical Product about flat; Petsmart up

By Colin Hanner

Chicago, May 1 – Monday’s high-yield primary market saw a pair of drive-by deals, while Covey Park Energy LLC had the most active issue of the day in the secondary market, traders said, adding that trading overall was light on the session.

USG Corp. priced a $500 million issue of 10-year senior notes at par to yield 4 7/8%.

New Home Co., Inc. priced a $75 million tack-on to its 7¼% senior notes due April 1, 2022 at 102.75. The issue was upsized from $50 million.

Back in the secondary, “there wasn’t a ton going on, aside from Covey Park,” a trader said.

Recently-issued Pharmaceutical Product Development, LLC saw some activity but was about flat on the day, a trader said.

Pet retailer Petsmart, Inc. rebounded by a round number, ticking closer to a mid-90s handle, traders said.

In the health care and pharmaceutical sphere, Community Health Systems, Inc. and Valeant Pharmaceuticals International, Inc. traded as headlines swirled around both companies.

For Franklin, Tenn.-based Community Health, bonds traded higher ahead of earnings, which came out after the closing bell on Monday. Valeant announced it reduced its senior secured terms loans by roughly an additional $220 million, though that did little to affect its most-traded bond’s movement.

Elsewhere, several idiosyncratic names in the high-yield space traded, though movement was tight, traders said.

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