Forestar, Tallgrass Energy price; Kraft Heinz in focus, firms; Bombardier gains

By Paul A. Harris and Abigail W. Adams

Portland, Me., Feb. 18 – The domestic high-yield primary market launched the truncated week with two drive-by deals pricing.

Tallgrass Energy Partners LP priced a downsized $430 million issue at a discount and Forestar Group Inc. priced a $300 million issue of eight-year notes.

While only one deal is on the forward calendar, it is a megadeal – Zayo Group Holdings Inc.’s $3.08 billion two-part offering.

Meanwhile, it was a quiet day in the secondary space with Kraft Heinz Foods Co.’s senior notes continuing to dominate activity following a ratings downgrade that pushed the notes into junk territory.

The longer duration notes were firming in the high-volume activity.

Bombardier Inc.’s 7 7/8% senior notes due 2027 remained active with the notes adding to their gains following news of an asset sale.

Of the recent issues, HCA Healthcare, Inc.’s 3½% senior notes due 2030 (Ba2/BB-/BB) and United Rentals (North America), Inc.’s 4% senior notes due 2030 (Ba3/BB-) remained active in secondary trading.

However, the notes were unchanged with both putting in lackluster performances.

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