Morning Commentary: Risk off in high-yield secondary market; Energizer notes below par

By Abigail W. Adams

Portland, Me., March 4 – The domestic high-yield bond primary market was quiet on Friday with the forward calendar empty heading into the coming week.

While there was some activity over the past week with four deals clearing the primary market, new issuance has been sidelined by the volatility in markets, sources said.

The volatility continued on Friday with the secondary space down ¼ point early in the session.

While the 10-year Treasury yield sank over 100 bps to 1.709% at about 11 a.m. ET, it did little to bolster the secondary space, which was firmly risk off following Russia’s attack on a nuclear reactor.

Market players were de-risking into the weekend, a source said.

Energizer Holdings, Inc.’s new 6½% notes due 2027 (B2/B) gave back their gains from a decent break and sank below par early in Friday’s session.

The 6½% notes were marked at 99 5/8 bid, 99 7/8 offered early in the session, a source said.

The notes closed the previous session at par ¼ bid, par ¾ offered.

Energizer priced an upsized $300 million, from $250 million, issue of the 6½% notes at par to yield 6.502% on Thursday.

Pricing came near the tight end of yield talk in the 6 5/8% area.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.