IHO (Schaeffler) lags; IAA, Builders FirstSource weaken; Exela drops; funds add $4 million

By Paul A. Harris and Abigail W. Adams

Portland, Me., May 23 – The volatility roiling capital markets sidelined the domestic high-yield primary market’s new issue activity on Thursday, which has seen a steady stream of activity throughout the week.

Only one deal left on the forward calendar was expected to price during the current week – Neiman Marcus Group Ltd. LLC’s $550 million offering of five-year second lien notes.

However, the prospect of the deal pricing during Friday’s shortened session is unlikely, sources say.

In the European market, Germany-based Novem Group GmbH set price talk on its €375 million offering of five-year senior secured floating-rate notes (Ba3/B+).

Meanwhile, the secondary space was soft on Thursday, as the dollar-denominated tranches of IHO Verwaltungs GmbH were lagging their issue prices in secondary trading.

While still well above their issue price, Builders FirstSource Inc.’s 6¾% senior notes due 2027 and IAA, Inc.’s (Insurance Auto Auctions, Inc.) 5½% senior notes due 2027 were weakening in high-volume activity in the secondary space.

Outside of the new paper, Power Solutions’ 8½% unsecured notes due 2027 traded down in high-volume activity and Exela Technologies Inc.’s 10% senior notes due 2023 dropped following a ratings downgrade.

Junk funds saw an inflow of $4 million for the week ended Wednesday, according to fund-flow statistics generated by AMG Data Services Inc.

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