AM General prices; secondary losses accelerate; Tenet Healthcare sells off

By Paul A. Harris and Abigail W. Adams

Portland, Me., Sept. 21 – The Sept. 21 opened with only one deal clearing the market – a stark contrast to the previous Monday when $3.4 billion of junk cleared the market in a burst of drive-by business accompanied by a steep buildup to the new deal calendar.

Following a roadshow that ran throughout the past week, AM General sold $600 million of eight-year senior secured notes (B2/B+).

While new deal activity was thin on Monday, there is an active forward calendar with $2 billion expected to price before the week draws to a close.

Meanwhile, the secondary space was again heavy as a risk-off attitude pervaded the markets, a source said.

The overall market was down about ¼ to ½ point with the healthcare space leading losses as the death of Supreme Court Justice Ruth Bader Ginsburg cast fresh doubt over the Affordable Care Act.

Tenet Healthcare Corp.’s recently priced 6 1/8% senior notes due 2028 (Caa1/CCC+/B) sold off in high-volume activity on Monday with the notes closing the day well below par.

HCA Healthcare, Inc.’s 3½% senior notes due 2030 (Ba2/BB-/BB) also saw renewed attention with the notes shaving off their premium in the active trading.

Several other recent issues also sank below par amid the heaviness in the market including First Quantum Minerals Ltd.’s 6 7/8% senior notes due 2027 (CCC+/B-) and Methanex Corp.’s 5 1/8% senior notes due 2027 (Ba1/BB/BB).

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