AmWINS, MoneyGram price high-yield bonds; Laredo under pressure; FirstStudent flat

By Paul A. Harris and Abigail W. Adams

Portland, Me., July 14 – Amid a steady stream of primary market news on Wednesday two dollar-denominated issuers raised $1.21 billion in single-tranche deals that had been shopped by means of investor roadshows.

Meanwhile, the secondary space was again soft on Wednesday as Federal Reserve Chair Jerome Powell testified before Congress and reaffirmed his stance that inflation was transitory.

While soft, the market was quiet with no major price movements in the space.

Equity markets seemed to be driving valuations in junkbondland, a source said.

While some sources are expecting a pullback with the market at all-time tights, with equity markets as elevated as they are, other sources did not see immediate cause for concern.

“As long as equity markets stay this elevated, high-yield shouldn’t have much to worry about given the huge equity cushion (margin of safety),” a source said.

New issues were once again the major driver of trading activity in the space.

First Student Bidco Inc.’s 4% senior secured notes due 2029 (Ba3/B+/BB+) fell flat in the aftermarket with the notes priced to perfection.

However, Laredo Petroleum, Inc.’s 7¾% senior notes due 2029 (B3/B) continued to trend lower after a weak break with the notes closing the day 2 points below par.

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