Avient reopens HY primary; secondary rally continues, posts strong monthly gains; Avaya tanks

By Paul A. Harris and Abigail W. Adams

Portland, Me., July 29 – While the domestic high-yield primary market saw another quiet week, Avient Corp.’s $725 million placement of 7 1/8% senior notes due August 2030 (Ba3/BB-) provided a glimmer of light with the deal heavily oversubscribed and putting in a strong secondary market performance.

Meanwhile, the secondary space had a quiet session on Friday with volume thin.

However, the market extended its rally with returns for July nearly eliminating losses from June.

High-quality and crossover credits were the largest gainers in the most recent rally with the strong credits in demand with investors still wary of a recession and tight financial conditions on weaker parts of the market.

Ford Motor Credit Co. LLC is among the credits in demand with its unsecured notes (Ba2/BB+) making strong gains in the space.

However, Carvana Co.’s 10¼% senior notes due 2030 (Caa2/CCC+) were only nominally improved as the market roared, with the credit one that investors remain wary of.

And while the overall market was strong, earnings disappointments continued to result in outsized losses in certain credits.

Avaya Holdings Corp.’s 6 1/8% senior notes due 2028 (B2/B+) plummeted double digits on Friday after a preliminary earnings release reignited fears about the company’s future viability.

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