Junk calendar eyed; First Quantum jumps on acquisition interest; funds add $615 million

By Paul A. Harris and Abigail W. Adams

Portland, Me., June 15 – Sails luffed in the high-yield primary market on Thursday, with new issue activity expected to remain muted ahead of the Juneteenth three-day holiday weekend set to commence following Friday’s close, sources said.

A pair of dollar-denominated deals are expected to price on the heels of the holiday weekend recess.

Windsor Holdings III, LLC is on the high-yield road with a $1.8 billion offering of seven-year senior secured notes (B2//BB+) backing the buyout of Univar Solutions Inc. by Apollo.

The deal comes with initial talk in the 8½% area, having arrived in the market with $1 billion of reverse inquiry behind it, according to a sellside source.

Also HighPeak Energy Inc. is shopping a $575 million offering of five-year senior notes (B3/B+/B+). Initial talk is 11½% to 12%, including a discount.

With activity surrounding recent issuance drying up, topical news was the driver of activity in the secondary space on Thursday.

First Quantum Minerals Ltd.’s senior notes (/B+) jumped following news the mining company had attracted takeover interest.

Carnival Corp.’s senior notes were active although little changed after the company’s capital structure logged strong gains over the past month.

Meanwhile, inflows continued with high-yield mutual funds and exchange-traded funds adding $615 million in the week through Wednesday’s close, according to the Refinitiv Lipper US Fund Flow report.

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