High yield: Hilton plans Monday call; EnerSys holds premium; Medical Properties crumbles

By Paul A. Harris and Abigail W. Adams

Portland, Me., Jan. 5 – No purely junk-rated deals priced on Friday, although some high-yield market participants watched Newmark Group, Inc.’s upsized, split-rated $600 million issue of 7½% five-year senior bullet notes (BB+/BBB-) that priced at par in a drive-by.

The deal bore some earmarks of a high-yield execution, but the notes are not expected to trade on the high-yield desk, sources said on Friday.

The sole Friday news nugget from the straight speculative-grade primary market was a deal announcement from Hilton Grand Vacations Inc., which plans to kick off a $900 million offering of Hilton Grand Vacations Borrower Escrow LLC eight-year senior secured notes (Ba2/BB+/BB+) on a Monday investor call.

The new year began meekly enough in the primary market, with the Jan. 1 week seeing just $750 million of issuance in two dollar-denominated, junk-rated tranches.

Meanwhile, it was a topsy turvy day in the secondary space following the release of the U.S. non-farm payrolls report, which came in hotter than expected.

EnerSys’ new 6 5/8% senior notes due 2032 (Ba3/BB+) came in slightly from the heights reached on the break.

However, they continued to trade with a strong premium to their issue price.

Medical Properties Trust Inc.’s senior notes (Ba2/BB-) sank 2 to 5 points after the REIT gave an update on efforts to collect unpaid rent from its largest tenant.

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