Junk primary closes week quietly; SRS soars; Altice levels; funds add $603.5 million

By Abigail W. Adams

Portland, Me., March 28 – The domestic high-yield primary market closed an active week quietly with no deals pricing ahead of the holiday weekend in the United States.

While the active forward calendar was empty heading into the long weekend, the active pace of issuance is expected to continue as issuers address their refinancing needs while credit spreads remain near their tights of the year, sources said.

Meanwhile, the cash bond market was either side of unchanged on Thursday after a largely sideways week.

The new issues to price over the past week continued to put in solid aftermarket performances with all trading at a premium to issue price.

New Home Co. Inc.’s 9¼% senior notes due 2029 (B2/B-) were no exception with the notes holding the strong gains made on the break.

Outside of recent issues, Altice France SA’s senior notes remained in focus with the notes leveling off after credit downgrades caused further destruction in the capital structure.

SRS Distribution Inc.’s senior notes (Caa2/CCC) were the major winners of Thursday’s session with the notes shooting up 8 to 10 points after Home Depot announced it was acquiring the company in an $18.25 billion takeover.

Meanwhile, high-yield mutual funds and exchange-traded funds saw inflows of $603.5 million in the week through Wednesday’s close after a $2 billion outflow the previous week.

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