Consolidated Energy, GFL, Avation, HC2 price; PetSmart, Tesla drop; funds add $526 million

By Paul A. Harris and Abigail W. Adams

Portland, Me., May 3 – The domestic primary market saw a busy session Thursday with three new deals and one add-on pricing.

Consolidated Energy Finance SA priced a resized, restructured $525 million two-part offering of senior notes (B2/BB). Singapore’s Avation plc priced a $300 million issue of three-year senior notes (B/BB-) at par to yield 6½%.

GFL Environmental Inc. priced $400 million of eight-year senior notes (Caa1/B-) at par to yield 7% in a quick-to-market trade.

HC2 Holdings, Inc. priced an upsized $110 million add-on to its 11% senior secured notes due 2019 (Caa1/B-) at 102 to yield 9.584% in a drive-by.

The secondary market continued to feel heavy on Thursday, market sources said. However, the market firmed as the afternoon progressed and was seen down in general only about ¼ point.

Tesla Inc.’s 5.3% senior notes due 2025 dropped about 1 point after CEO Elon Musk made waves by sparring with analysts on the electric car manufacturer’s first quarter earnings conference call.

The bonds of PetSmart Inc. “took a hit” on Thursday and were off 2 to 3 points after Amazon announced it would enter the pet food business.

After a week which saw $2.489 billion in outflows, dedicated high-yield bond funds saw $526 million of net inflows in the week ending Wednesday.

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