OWICs abound; Nexstar skyrockets; Avis, Norbord go up; PG&E gains; funds add $602 million

By Paul A. Harris and Abigail W. Adams

Portland, Me., June 20 – The domestic high-yield primary market took a back seat to the secondary space on Thursday with the market “on fire” as a risk on sentiment returned in full force.

With many certain of a pending Federal Reserve interest rate cut, an enormous offers-wanted-in-competition was circulating the market, sources said.

While no deals priced during Thursday’s session, Michaels Stores, Inc.’s $500 million offering of eight-year senior notes (B1/B) and Alpha Auto Group’s $225 million offering of five-year senior notes are expected to clear the calendar on Friday.

New paper remained in focus in the secondary space with the recent deals continuing to trade up.

Nexstar Broadcasting, Inc.’s 5 5/8% senior notes due 2027 (B3/B) skyrocketed in the secondary space with the notes continuing to post gains on Thursday after a strong start out of the gate.

Avis Budget Group, Inc.’s 5¾% senior notes due 2027 (B1/BB) and Norbord Inc.’s 5¾% senior notes due 2027 (Ba1/BB+) also rose alongside the overall market.

Outside of the new paper, Pacific Gas & Electric Co.’s 6.05% senior notes due 2034 were active and continuing to post gains.

Meanwhile, high-yield mutual funds and exchange-traded funds saw their second consecutive week of inflows with $602 million entering the space for the week ended Wednesday, according to fund-flow statistics generated by AMG Data Services Inc.

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