Grinding Media/Moly-Cop price add-on; Hovnanian, McLaren on tap; NRG up, Halcon stays busy

By Paul Deckelman and Paul A. Harris

New York, July 12 – The high-yield market saw its second new dollar-denominated deal of July on Wednesday, and like the first such deal, the transaction was a smallish add-on to existing bonds, brought by metals producer Grinding Media Inc./Moly-Cop AltaSteel Ltd. Traders did not see any immediate aftermarket dealings in the name, nor in IHS Markit Ltd., which did an add-on pricing on Monday.

New-deal sources were meantime anticipating two pricings for Thursday’s session – neither of them an add-on – from homebuilder K. Hovnanian Enterprises, Inc., which is doing $840 million of secured five-year and seven-year notes, as well as British car manufacturer McLaren Automotive, which has been shopping a dollar-denominated tranche of five-year secured notes, along with a similar tranche of sterling-denominated securities.

In the secondary market, traders saw some activity in such recently priced new issues as Exela Technologies, SiriusXM Radio Inc., Intelsat Jackson Holdings SA, PetSmart, Inc. and NOVA Chemicals Corp.

But the day’s real action was in the bonds of NRG Energy, Inc., which firmed smartly after the power generation company outlined a sweeping business transformation plan that anticipates cutting its debt by two-thirds and sharply bringing its leverage ratio down.

Halcon Resources Corp. bonds were busy for a second consecutive session, hanging onto the big gains notched on Tuesday when the oil and gas producer announced a major asset sale and a plan to buy back half of its outstanding main series of bonds.

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