Civitas, Univar price in junk primary; GrafTech holds premium; funds add $265 million

By Paul A. Harris and Abigail W. Adams

Portland, Me., June 22 – Four issuers priced five tranches of junk-rated, dollar-denominated notes for an overall total of $4.25 billion on Thursday, the biggest day in the primary market since early April.

The session’s biggest issuer was Civitas Resources, Inc., which priced $2.7 billion of senior notes (B1/BB-/BB-) split 50-50 between two tranches.

A $1.35 billion tranche of five-year notes priced at par to yield 8 3/8%, the tight end of talk.

The long-dated tranche came as a $1.35 billion issue of eight-year notes that priced at par to yield 8¾%, on top of talk.

The bond financing backing Apollo’s buyout of Univar Solutions Inc. priced on Thursday.

Issuing entity Windsor Holdings III, LLC priced a downsized $800 million issue of seven-year senior secured notes (B2/B+/BB+) at par to yield 8½%, in the middle of talk.

Meanwhile, the secondary space saw another soft day as the market continued to pull back from its recent rally amid a hawkish tone from the Fed.

GrafTech Global Enterprises Inc.’s new 9 7/8% senior secured notes due 2028 (B1/BB) were holding the strong premium gained after breaking for trade the previous session. However, they were unchanged on the day.

High-yield mutual funds and ETFs continued to see inflows with $265 million entering the space in the week through Wednesday’s close, according to the Refinitiv Lipper Fund Flow report.

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