Primary roars into action; six issuers price $6.25 billion in seven tranches; secondary gains continue

By Abigail W. Adams

Portland, Me., Nov. 9 – The domestic high-yield primary market roared into action on Monday with six issuers pricing a cumulative $6.25 billion in seven tranches and the forward calendar growing.

The deals played to heavy demand during bookbuilding with the majority of offerings upsizing and several coming on a 3-handle.

Allison Transmission Inc., Axalta Coating Systems LLC, Ford Motor Credit Co. LLC, Stericycle Inc. and Sunoco LP all cleared the primary market on Monday.

Veritas US Inc. and Veritas Bermuda Ltd. also priced an upsized $750 million add-on to their 7½% senior secured notes due Sept. 1, 2025 (B2/B).

Monday also saw a modest buildup in the forward calendar with Tervita Corp. in the market with a $500 million offering of five-year senior secured second-lien notes and Interface Inc. starting a roadshow for a $300 million offering of eight-year senior notes.

While new paper was in focus, the secondary space continued to rip higher on the heels of President-elect Joseph R. Biden’s decisive victory and positive early data from Pfizer’s Covid-19 vaccine.

With renewed faith in the reopening of the economy, American Airlines Group, Inc.’s 11¾% senior notes due 2025 skyrocketed with the once struggling notes up 6 points, sources said.

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