Junk new deals arrive as drive-bys; Tenet improves; US Foods gains; Covanta on a 101-handle

By Paul A. Harris and Abigail W. Adams

Portland, Me., Nov. 17 – Amid a steady stream of news in the high-yield new issue market on Wednesday two issuers came with $1 billion-plus drive-by deals.

Hertz Corp. and Venture Global Calcasieu Pass LLC each managed to work their way through the primary market with sizeable offering as one day’s business.

Meanwhile, the secondary space was largely unchanged on Wednesday despite the weakness in equities.

While the market stood poised to close the day towards its lows and rate-sensitive names continued to see some selling activity, many remained on the sidelines with the hope the market rally will hold until the end of the year, a source said.

The market remains flush with cash with new issues the area where money is being put to work.

New and recent deals continued to dominate the tape with the majority of new deals performing well.

While Tenet Healthcare Corp.’s 4 3/8% senior secured first-lien notes due 2030 (B1/B+/B+) struggled out of the gate, the notes improved as the session progressed and closed the day with a par-handle.

US Foods, Inc.’s 4 5/8% senior notes due 2030 (B3/B+) also struggled early in the session but caught a bid as the session progressed and closed the day at a healthy premium to their issue price.

However, Covanta Holding Corp.’s 4 7/8% sustainability-linked senior notes due 2029 were putting in a strong performance with the notes trading up to a 101-handle.

© 2015 Prospect News.
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