Avient prices; secondary surges post-Fed; cross-over credits in demand; Teva gains on settlement

By Paul A. Harris and Abigail W. Adams

Portland, Me., July 27 – In a high-yield new-issue market nearly shuttered by risk aversion the Wednesday session saw a blowout acquisition financing deal clear the market in a tight execution on an accelerated timeline

Avient Corp. priced a $725 million issue of eight-year senior notes (Ba3/BB-) at par to yield 7 1/8% on Wednesday.

The yield printed 12.5 basis points inside of the 7¼% to 7½% yield talk. Initial talk was in the 7½% area. The deal was pre-marketed in the high-7% area.

It was risk-on in the secondary space on Wednesday following the Federal Reserve’s 75 basis point rate increase with the cash bond market ending the day up ½ to ¾ points.

Chair Jerome Powell again assuaged the market’s fear of an overly aggressive Fed tipping the economy into a recession at his press conference.

Centene Corp.’s split-rated senior notes (Ba1/BBB-/BB+) were making strong gains in active trading.

T-Mobile US, Inc.’s senior notes (Baa3/BB+/BBB-) improved in high-volume activity as the rising stars change hands.

While the overall market made large gains on Wednesday, Teva Pharmaceutical Industries Ltd.’s dollar-denominated bonds (Ba2/BB-) were the biggest winners of the day with the pharmaceutical company’s capital structure rising 3 to 5 points following an opioid settlement.

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