Junk: Maxim Crane prices; Syneos pre-markets; Tenneco falls; funds lose $1.09 billion

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 17 – Maxim Crane Works, LP priced a $500 million issue of Maxim Crane Works Holdings Capital, LLC 11˝% five-year second-priority senior secured notes (Caa1/B-) at 98.158 to yield 12%, Thursday’s sole issue in the junk primary market.

The yield printed at the wide end of yield talk. The issue price came in line with price talk.

The deal was heard to be playing to $780 million of demand from more than 22 accounts on Thursday morning.

JPMorgan was left books.

Word has been circulating the market that Maxim will be JPMorgan’s final deal before Labor Day.

On Thursday Goldman Sachs was heard to be pre-marketing $1.7 billion of high-yield bonds backing the buyout of Syneos Health Inc. by Elliott Investment Management, Patient Square Capital and Veritas Capital.

Initial conversations are taking place in the context of 9%, sources said.

Meanwhile, it was another heavy day in the secondary space with a flat open giving way to selling as the market reassessed the Federal Reserve’s next move.

Tenneco Inc.’s 8% senior secured notes due 2028 (B1/B) continued their downfall with the notes closing the day on an 81-handle.

It was another week of outflows for high-yield mutual funds and ETFs with $1.09 billion leaving the space in the week through Wednesday’s close, according to the Refinitiv Lipper Fund Flow report.

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