Four issuers price $1.72 billion; Citgo in focus; Turning Point soars; funds add $1.34 billion

By Paul A. Harris and Abigail W. Adams

Portland, Me., Feb. 4 – The domestic high-yield primary market was active on Thursday with four issuers pricing a cumulative $1.72 billion.

Among them was Rent-A-Center, Inc. with a heavily oversubscribed offering.

Meanwhile, the secondary space continued to grind tighter on Thursday with better-than-expected earnings reports pouring in.

New paper and earnings-related news were the main drivers of trading activity.

Citgo Petroleum Corp.’s 6 3/8% senior notes due 2026 (B3/B+/BB) were in focus with the notes trading up to a 101-handle.

Diversified Healthcare Trust’s 4 3/8% senior notes due 2031 (Ba3/BB) were also putting in a strong performance in active trading.

While a small issue, Turning Point Brands, Inc.’s 5 5/8% senior secured notes due 2026 (Ba3/BB) were in hot demand with the notes jumping to a 103-handle.

Outside of recent issues, L Brands, Inc.’s senior notes were making gains after the company raised its fourth-quarter guidance and provided an update on efforts to spin off its Victoria’s Secret brand.

Meanwhile, fund flows turned positive over the past week with high-yield mutual and exchange-traded funds adding $1.337 billion, according to the Refinitiv Lipper Fund Flow report.

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