Junk primary prices $3.75 billion; Lithia gains; Tenet improves; funds lose $1.71 billion

By Paul A. Harris and Abigail W. Adams

Portland, Me., May 20 – The domestic high-yield primary market had an active session with six issuers pricing $3.75 billion in seven dollar-denominated tranches.

SRS Distribution Inc., Hilton Grand Vacations Inc. and Xenia Hotels & Resorts, Inc. were among the issuers to clear the market on Thursday.

Meanwhile, the secondary space opened Thursday lower but firmed as the session progressed.

However, while the market was firm at the close with paper quoted higher, it did not translate into trades – volume outside of new issues remaining muted.

In recent issues, Lithia Motors Inc.’s 3 7/8% senior notes due 2029 (Ba2/BB+) continued to gain in high-volume activity with the demand seen during bookbuilding trailing the notes into the secondary space.

NFP Corp.’s 4 7/8% senior notes due 2028 (B1/B) were also putting in a strong performance with the notes on a 101-handle.

Tenet Healthcare Corp.’s 4¼% senior secured first-lien notes due 2029 (B1/B+/B+) improved on Thursday with the notes hitting par after trading well below the previous session.

While the market tone improved on Thursday, money continued to leave the space with high-yield exchange-traded and mutual funds having outflows of $1.71 billion in the week through Wednesday’s close, according to the Refinitiv Lipper Fund Flow report.

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