Frontier, Centennial, Target Hospitality price; Sunoco in focus; Manitowoc trades up

By Paul A. Harris and Abigail W. Adams

Portland, Me., March 12 – The domestic high-yield primary market was in high-gear on Tuesday with $2.49 billion pricing over three deals and the forward calendar growing.

Frontier Communications Corp. priced a $1.65 billion issue of eight-year first lien senior secured notes (B2/B/BB) at par to yield 8% in a drive-by.

Centennial Resource Production, LLC priced $500 million of 6 7/8% eight-year senior notes (B3/BB-) at 99.235 to yield 7%.

Target Hospitality priced $340 million of 9½% five-year senior secured notes (B2/B) at 99.029 to yield 9¾%.

Amkor Technology, Inc. plans to price $525 million of 8.5-year senior notes (current ratings B1/BB) on Wednesday.

Meanwhile, ADT Corp. said it is proposing to issue up to $2.65 billion of notes: $750 million each of first-priority senior secured notes due 2024 and 2026 and up to $1.15 billion of senior unsecured notes due 2027. ADT expects to launch the offerings the week of March 18.

New deal activity spurred activity in the secondary space which remained firm on Tuesday, sources said.

Sunoco LP’s 6% senior notes due 2027 (B1/BB-/BB) were in focus in the secondary space although the notes were slightly weaker from their highs after breaking for trade on Monday.

While volume was lighter, Manitowoc Co. Inc.’s 9% senior notes due 2026 (B2/B) were performing well in the secondary space with the notes trading well above their issue price.

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