Two oversubscribed deals price in HY primary; Chemours struggles; funds lose $1.16 billion

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 5 – The new issue market put up another $1.85 billion in two junk-rated, dollar-denominated tranches on Thursday, as Ford Motor Credit Co. LLC and Crocs, Inc. priced oversubscribed deals in tight-pricing drive-by executions.

Meanwhile, it was a soft day in the day in the secondary space with several recent deals struggling.

Chemours Co.’s 4 5/8% senior notes due 2029 (B1/B) sank below par in active trading.

GPS Hospitality Holding Co. LLC’s 7% senior notes due 2028 (Caa1/B-/B-) fell flat with the notes closing the day below their issue price.

Outside of recent issues, CommScope, Inc.’s capital structure was under pressure following the company’s earnings report with the notes shaving off 2 to 3 points.

Meanwhile, the outflows continued with high-yield mutual and exchange-traded funds losing $1.16 billion in the week through Wednesday’s close, according to the Refinitiv Lipper Fund Flow Report Newsline.

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