Four issuers sell low-grade bonds; W.R Grace outperforms; Royal Caribbean, Tallgrass flat

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 12 – Four issuers raised a combined total of $2.4 billion with one tranche each of dollar-denominated junk on Thursday.

AdaptHealth LLC and Carvana Co. were among the issuers to tap the market.

Meanwhile, the secondary space was at times heavy on Thursday as the market digested the latest producer price index data, which saw the largest increase in more than a decade.

Royal Caribbean Cruises Ltd.’s 5½% senior notes due 2026 (B2/B) and Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp.’s 6% senior notes due 2031 (B1/BB-/BB-) were also heavy at times although they closed the day largely flat.

CommScope, Inc.’s 4¾% senior notes due 2029 (Ba3/B) were trading with a slight premium although they remained on a par-handle.

However, W.R. Grace Holdings LLC’s 5 5/8% senior notes due 2029 (B3/CCC+/B+) continued to outperform with the notes holding on to the large premium reached after breaking for trade.

Meanwhile, the trend of outflows reversed course with high-yield mutual and exchange-traded funds adding $510 million in the week through Wednesday’s close, according to the Refinitiv Lipper Fund Flow Report Newsline.

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