Salem, upsized Tallgrass add-on price, new Salem paper pops; funds slide by $1.73 billion

By Paul Deckelman

New York, May 11 – The high-yield primary sphere saw a pair of new deals price during Thursday’s session, generating $605 million of new U.S. dollar-denominated and fully junk-rated paper.

Both deals were regularly scheduled transactions off the forward calendar.

Salem Media Group, Inc., a provider of radio programming and digital media content, priced $225 million of seven-year secured notes, which firmed smartly in active trading when they moved into the aftermarket.

Tallgrass Energy Partners LLC priced an upsized $350 million add-on to its existing 2024 notes.

The notes moved modestly higher when they began trading around.

In the secondary market, traders saw considerable activity in several recently priced issues, including Wednesday’s issue from CDK Global Inc. and Tuesday’s new issues from Fortescue Metals Group Ltd. and Community Health Systems Inc.

Away from the new-deal arena, Cengage Learning Inc.’s bonds were on the slide after the educational materials company posted disappointing first-quarter earnings.

Statistical market performance measures turned mixed on Thursday after being higher across the board on Wednesday.

Another numerical indicator – flows of investor cash into or out of high-yield mutual funds and exchange-traded funds – remained clearly on the downside in the latest reporting week, posting a $1.73 billion outflow, according to numbers released on Thursday.

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