New junk paper prices wide; Sunnova, ModivCare, Scotts at a premium; WW is weighed down

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 11 – The high-yield new issue market continued to crank on Wednesday as four single-tranche issuers raised a combined $3.91 billion.

Executions were a mixed bag, at best, with one deal pricing at the tight end of talk, one pricing in the middle of talk, and two pricing at the wide ends.

Meanwhile, the secondary space was largely unchanged on Wednesday although there remained some new-issue fatigue as the primary market continued to pound out new paper.

However, in contrast to Monday’s deals, several of the deals to price on Tuesday were putting in respectable performances in the aftermarket.

Sunnova Energy Corp.’s 5 7/8% senior notes due 2026 (B1/B-), ModivCare Inc.’s 5% senior notes due 2029 (B2/B+) and Scotts Miracle-Gro Co.’s 4 3/8% senior notes due 2032 (Ba3/B+) were all trading at a decent premium to their issue price

However, while the deals were sizable, trading activity in the names was relatively light with late August illiquidity setting in.

Meanwhile, outside of recent deals, WW International, Inc.’s 4˝% senior secured notes due 2029 (Ba3/BB-) were under pressure with the notes down 3 points following the company’s earnings report.

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