U.K.’s McLaren prices secured deal; Intelsat active; funds fall by $1.14 billion

By Paul Deckelman and Paul A. Harris

New York, July 13 – The high-yield primary market saw its first bona fide dollar-denominated new issue for July and the year’s second half that was not an add-on to existing bonds price on Thursday.

British carmaker McLaren Automotive came to market during the session with $250 million of five-year senior secured notes, as part of an upsized £564 million equivalent dual-currency calendar offering that also included a sterling-denominated secured tranche.

Traders said that the McLaren bonds – the first dollar-denominated non-add-on new issue since June 29 – was well received when it hit the aftermarket, gaining almost 2 points when freed for secondary action.

Also in the new-deal sphere, traders saw activity in relatively recently priced names such as Tenet Healthcare Corp., PetSmart, Inc. and Intelsat SA.

Several of the latter company’s existing issues were also busily traded, moving up amid news reports that some of the company’s bondholders were in talks to try to revive the communications satellite company’s failed planned merger with industry peer OneWeb LLC.

Statistical market performance measures were higher across the board for a second straight session on Thursday.

Another numerical indicator – flows of investor cash into or out of high yield mutual funds and exchange-traded funds – plunged deeper into the red this week as $1.14 billion left those weekly reporting-only domestic funds during the week ended Wednesday, July 12.

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