High yield: Morgan Automotive prices; Jazz megadeal on tap; Charter flat; Emergent down again

By Paul A. Harris and Abigail W. Adams

Portland, Me., April 20 – While only one deal cleared the domestic high-yield primary market on Tuesday, the forward calendar continued to build.

Morgan Automotive Group priced an upsized $700 million issue of eight-year senior notes.

Jazz Pharmaceuticals was the largest of the deals to join the forward calendar with the company beginning a roadshow for a $2.7 billion offering of eight-year senior secured notes (expected ratings Ba2/BB-/BB+).

Meanwhile, in the secondary Charter Communications, Inc.’s new 4½% senior notes due 2033 (B1/BB) fell flat in the aftermarket – a theme among several recent issues.

Longer-duration notes were also under pressure amid the general market weakness on Tuesday.

SCIH Salt Holdings, Inc.’s two tranches of senior notes were weaker on Tuesday with both issues dropping below par.

Outside of recent issues, Emergent BioSolutions Inc.’s 3 7/8% senior notes due 2028 continued their downward momentum on Tuesday as more negative headlines hit the company following a manufacturing mix-up that destroyed about 15 million doses of Johnson & Johnson’s Covid-19 vaccine.

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