Junkland: Herbalife, Genesee & Wyoming price; GEO Group outperforms; Rakuten fades

By Paul A. Harris and Abigail W. Adams

Portland, Me., April 5 – An active Friday session in the high-yield bond new issue market had two issuers place secured notes, selling a combined face amount of $1.5 billion.

Herbalife International Inc. and Genesee & Wyoming Inc. each priced deals with modifications to terms outlined earlier in the week.

Meanwhile, it was a flat day in the secondary space on Friday although the tone firmed following the latest U.S. nonfarm payrolls report.

The market has remained laser-focused on new issuance and allocations with the majority of deals to price over the past week putting in strong aftermarket performances.

GEO Group, Inc.’s newly priced secured and unsecured tranches outperformed with the heavily oversubscribed offering shooting 2 to 3 points above the issue prices.

Dye & Durham Corp.’s newly priced 8 5/8% senior secured notes due 2029 (B1/B) maintained a healthy premium in active trade.

However, Rakuten Group Inc. 9¾% senior bullet notes due 2029 (BB) were fading on Friday after an initial strong performance in the aftermarket.

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