Junk primary clears $5.45 billion; new paper dominates secondary; Shelf Drilling tumbles

By Paul A. Harris and Abigail W. Adams

Portland, Me., Jan. 30 – News volume in the high-yield bond primary remained heavy on Tuesday, as four single-tranche dollar-denominated issuers priced $5.45 billion, the biggest day for new issuance in well over two years.

Elsewhere, it was a relatively flat day in the secondary space with the cash bond market either side of unchanged as market players await the Federal Open Market Committee’s Wednesday announcement.

The market remained new issue-centric with new and recent deals driving volume in the space.

Mr. Cooper’s new 7 1/8% senior notes due 2032 (B1/B/BB) came in from their heights after a strong break but held on to a premium in heavy volume on Tuesday.

Caesars Entertainment, Inc.’s 6½% senior secured notes due 2032 (Ba3/B+), the Caliber Collision/Wand NewCo 3 Inc. 7 5/8% senior secured notes due 2032 (B3/B), and Altice USA Inc. subsidiary CSC Holdings, LLC’s 11¾% senior guaranteed notes due 2029 (B2/B) were among the issues driving volume.

Outside of new and recent issues, Shelf Drilling Holdings Ltd.’s 9 5/8% senior secured notes due 2029 (B3/B-/B) were active with the notes tumbling alongside other oil drillers after Saudi Aramco announced it would abandon plans to boost output capacity.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.