Meritor and TerraForm bring drive-by add-ons; Tenet rebounds, but other recent deals softer

By Paul A. Harris and Paul Deckelman

New York, June 8 – The high-yield primary market started the new week with a pair of quickly shopped add-ons to existing bond issues.

Syndicate sources said that auto components maker Meritor, Inc. priced a $225 million addition to its 6¼% notes due 2024.

And clean-power company TerraForm Power, Inc. did $150 million of additional 5 7/8% notes due 2023 via a subsidiary.

Both issues priced fairly late in the session, precluding any real aftermarket activity.

The $377 million of new dollar-denominated and fully junk-rated domestic paper was up from Friday’s session, which had seen no new issues come to market.

Traders said that secondary market activity was restrained.

While some recent bond deals were seen firmer, such as the big new issue of eight-year notes from Tenet Healthcare Corp., others, such as XPO Logistics, Inc. and Cable ONE, Inc., were seen lower.

Away from the issues that have already priced, several new deals joined the forward calendar, including offerings from Sealed Air Corp., ATS Automation Tooling Systems Inc. and Carmike Cinemas Inc. Some of Sealed Air’s existing notes that are to be refinanced using its new-deal proceeds moved up in Monday’s trading.

Statistical indicators of junk market performance were lower across the board for a fifth consecutive session on Monday.

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