Primary quiet, though SPX slates; Tuesday deals trade higher; Community Health volatile

By Paul Deckelman and Paul A. Harris

New York, Aug. 3 – Things quieted down in the high-yield primary sphere on Wednesday. Syndicate sources reported that no new dollar-denominated, fully junk-rated paper from domestic or industrialized-country borrowers had priced during the session.

But they did see brisk activity, at solidly higher levels, in the three deals that had come to market on Tuesday as regularly scheduled forward calendar offerings: construction supply company Foundation Building Materials, LLC’s $575 million of five-year secured notes, mortgage insurer MGIC Investment Corp.’s upsized $425 million of seven-year notes and paint, varnish and sealants manufacturer Axalta Coating Systems Ltd.’s $500 million of eight-year notes, part of a two-tranche, dual-currency offering that also included eight-year euro-denominated notes.

There was somewhat less upside movement in the new paper that had gotten done in a pair of quick-to-market transactions during Monday’s session: SBA Communications Corp.’s upsized $1.1 billion of eight-year notes and MSCI Inc.’s upsized $500 million of 10-year paper.

Away from the issues that have actually priced, the syndicate sources said that industrial components manufacturer SPX Flow, Inc. was getting ready to price $600 million of eight- and 10-year notes during Thursday’s session.

Outside of the new-deal realm, traders saw intense activity in Community Health Systems, Inc. paper, which was pushing higher on Wednesday, partially rebounding after having plunged on Tuesday following the hospital operator’s disappointing quarterly results.

Statistical market performance measures were mixed for a fourth consecutive session on Wednesday.

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