Junk primary sees $2.43 billion price; Starwood holds premium; funds add $289 million

By Paul A. Harris and Abigail W. Adams

Portland, Me., March 14 – A news-heavy Thursday session in the high-yield new issue market saw four dollar-denominated deals price for a total face amount of $2.43 billion

Vital Energy Inc., Baytex Energy Corp. and Encore Capital Group, Inc. were among the issuers to price upsized deals on Thursday.

Meanwhile, it was a soft day in the secondary space with the latest slate of macro data spreading a risk-off sentiment through the market.

The Consumer Price Index report released Tuesday did little to move the needle in the market despite coming in hotter than expected.

However, the Producer Price Index report released Thursday also came in above forecast, calling into question whether the Fed would have the confirmation needed to begin cutting rates.

“People are worried about higher-for-longer,” a source said.

New paper was in focus with aftermarket performances remaining strong.

Aston Martin Capital Holdings Ltd.’s 10% senior secured notes due 2029 (B3/B-/B) jumped to a 101-handle.

Starwood Property Trust, Inc.’s 7¼% sustainability-linked senior notes due 2029 (Ba3/BB-/BB+) were able to maintain the gains made on the break.

Meanwhile, high-yield mutual funds and exchange-traded funds saw $289 million enter the space in the week through Wednesday’s close.

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