Nine issuers tap primary; Aramark, GFL Environmental flat

By Paul A. Harris and Abigail W. Adams

Portland, Me., April 23 – The new deals came fast and furious on Thursday with nine issuers tapping the high-yield primary market – many with issue sizes of $1 billion or more.

Gap, Inc., Netflix Inc., US Foods, Inc., XPO Logistics, Inc., Entegris Inc., Tronox Inc., MGM Resorts International, and Delta Air Lines, Inc. all brought deals.

Expedia Group, Inc. also became the latest investment-grade credit to price off the high-yield desk.

Meanwhile, new issues dominated activity in the secondary space.

However, recent deals were increasingly starting to fall flat in the aftermarket, which sources attributed to the abundance of new supply and tight pricing.

Aramark Services, Inc.’s newly priced 6 3/8% senior notes due 2025 (B1/BB-) and GFL Environmental Inc.’s 4¼% senior notes due 2025 (Ba3/BB-) were hovering around par in active trading. However, Howmet Aerospace Inc.’s split-rated 6 7/8% senior notes due 2025 (Ba3/BBB-) were trading at a steep premium in the aftermarket.

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