Charter leads junk primary; Golden Nugget tranches mixed; Calumet outperforms

By Paul A. Harris and Abigail W. Adams

Portland, Me., Jan. 13 – A busy Thursday session in the high-yield primary market saw four issuers price an overall $2.8 billion amount of issuance in five junk-rated, dollar-denominated tranches.

The biggest deal of the day was from the Charter Communications, Inc. subsidiaries CCO Holdings LLC and CCO Holdings Capital Corp. which priced an upsized $1.2 billion issue (from $1 billion) of 4¾% 10-year senior notes (B1/BB+/BB+) at par, tight to talk.

The order book was heard to contain $3 billion by midafternoon, according to a trader who added that there was a significant amount of reverse inquiry in the deal.

While the overall market was under pressure on Thursday, trading activity in the junk bond secondary was centered on new deals, which held up well.

Calumet Specialty Products Partners, LP and Calumet Finance Corp.’s 8 1/8% senior notes due 2027 (Caa1/B-) outperformed on Thursday with the notes trading at a strong premium to their issue price, despite the heaviness in the market.

Fertitta Entertainment, LLC’s new tranches were mixed in high-volume activity with the unsecured notes outperforming their secured counterpart.

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