Hilcorp drives by; junk rally continues, closes week with strong gains; GrafTech tumbles

By Paul A. Harris and Abigail W. Adams

Portland, Me., Nov. 3 – The lights came up in the junk bond new issue market for a drive-by deal on Friday.

Hilcorp priced an upsized $600 million issue (from $500 million) of Hilcorp Energy I, LP and Hilcorp Finance Co. 10-year senior secured notes (Ba2/BB+).

Meanwhile, the buy-a-thon continued in the secondary space as Treasury yields tumbled with the latest U.S. nonfarm payrolls report further fueling market expectations for an end to rate hikes.

The cash bond market added another 5/8 to 7/8 point after Thursday’s blockbuster gains with the market eliminating its October losses.

Navient Corp.’s 11½% senior notes due 2031 (Ba3/B+/BB-) continued their upward momentum with the notes adding another 1 point in active trade.

While buyers continued to flood the market, certain credits remained under pressure with those reporting disappointing earnings continuing “to get punished,” a source said.

GrafTech Global Enterprises Inc.’s senior notes (B1/BB) were the largest losers of Friday’s session with the notes down 3 to 7 points after an earnings miss.

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