Junk secondary rallies on cease-fire optimism; EQT upgraded; Nielson jumps on buyout

By Paul A. Harris and Abigail W. Adams

Portland, Me., March 29 – The domestic high-yield primary market remained quiet on Tuesday despite a strong session for risk assets with just one deal on the forward calendar.

Clydesdale Acquisition Holdings Inc. is marketing $1.98 billion of sustainability-linked notes backing the buyout of Novolex Holdings LLC by Apollo.

The deal was heard to be playing to heavy demand with pricing expected on Wednesday.

Meanwhile, it was an active day in the secondary space as the market jumped ¾ to 1 point on optimism surrounding a Russian-Ukrainian cease-fire, sources said.

Several badly battered names saw significant gains as buyers returned to the space.

However, with the two-year and 10-year Treasury yield curve inverting and fresh inflationary data due on Wednesday, several sources questioned whether the rally would have staying power.

EQT Corp.’s senior notes were in focus as the natural gas production company received its second investment-grade rating.

While active and nominally improved, the rate-sensitive notes did not see much price appreciation as a result of the upgrade, a source said.

Merger and acquisition activity continued to be a major driver of gains in the space with Nielsen Holdings plc’s senior notes jumping 2 to 5 points on news the company would be acquired.

Michaels Cos., Inc.’s senior notes were also on the rise in active trading following a better-than-expected earnings report.

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