New deal volume expected to stay thin; Charter volatile; HCA below par; energy plummets

By Paul A. Harris and Abigail W. Adams

Portland, Me., March 6 – The domestic high-yield primary market continued to be sidelined by volatility on Friday.

Del Monte Foods Inc.’s $575 million offering of seven-year senior secured notes (Caa2/CCC+) is the sole deal in the market with new deal volume expected to remain thin in the upcoming week.

Meanwhile, the sell-off continued in the secondary space although volume remained light with many attempting to gauge the future direction of the market, sources said.

The energy sector remained the heaviest hit with several names in the space plummeting as crude oil futures cratered more than 9%.

Charter Communications Inc.’s newly priced tranches were weakening in high-volume activity with the 4½% senior notes due 2030 now trading below their reoffer price.

HCA Healthcare, Inc.’s 3½% senior notes due 2030 (Ba2/BB-/BB) dropped back below par after a brief stint above.

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