Tenneco, Cornerstone deals awaited; Twitter falls; Carvana retests lows

By Paul A. Harris and Abigail W. Adams

Portland, Me., July 11 – The high-yield primary market put up a goose egg on Monday, with no deals announced and no deals priced, but new-issue activity is brewing, according to sources who expect at least two deal announcements this week.

Pegasus Merger Co., an affiliate of Apollo Global Management, Inc., has been pre-marketing $2 billion of secured notes and $1 billion of unsecured notes backing the leveraged buyout of Tenneco Inc., by Apollo, sources say.

The market expects to hear an announcement on the notes, along with $2.4 billion of term-loan debt, during the present week.

And Cornerstone Building Brands Inc. is expected to show up with an offering of senior secured notes this week to address at least a portion of the refinancing of a $1,675,000,000 bridge loan put in place in early March to support the buyout of the company by Clayton, Dubilier & Rice.

Large, liquid issues and topical news remained the driving force of activity in the secondary space.

Twitter, Inc.’s 5% senior notes due 2030 (Ba2/BB+) were under pressure after Elon Musk announced he was terminating his $44 billion takeover of the social media company.

Carvana Co.’s 10¼% senior notes due 2030 (Caa2/CCC) resumed their downtrend with the notes retesting their all-time lows after leveling off the previous week.

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