WPX Energy, TRI Pointe, Meritor price; secondary ‘on fire’; new deals trade up

By Paul A. Harris and Abigail W. Adams

Portland, Me., June 3 – The throttle on the new issue engine in the hard-rallying high-yield market remained wide open on Wednesday, sources said.

In addition to straight-out junk deals, high-yield investors were eyeing crossover deals and select high-grade paper that was expected to come with substantial coupons.

Wednesday’s session had drive-by deals from WPX Energy, Inc., TRI Pointe Group Inc., and Meritor, Inc.

Core & Main LP priced a $250 million add-on to its 6 1/8% senior notes due Aug. 15, 2025 (Caa2/existing CCC+).

Service Properties Trust priced an upsized $800 million issue of split-rated five-year senior notes (Baa3/BB+).

Meanwhile, in the secondary space new issues continued to dominate the tape.

Citgo Petroleum Corp.’s 7% senior notes due 2025 (B3/B+/BB), MGM Growth Properties Operating Partnership LP and MGP Finance Co-Issuer, Inc.’s 4 5/8% senior notes due 2025 (B1/BB-/BB+), Endeavor Energy Resources LP and EER Finance Inc.’s 6 5/8% senior notes due 2025 (B1/BB-/BB+), and Tenet Healthcare Corp.’s 4 5/8% senior notes due 2028 (B1/BB-/B+) were all trading with large premiums in the aftermarket.

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