AMN Healthcare prices; forward calendar grows; j2 Global in focus; Frontier gains; Tenet tops par

By Paul A. Harris and Abigail W. Adams

Portland, Me., Oct. 5 – The domestic high-yield primary market priced one deal on Monday.

In drive-by action, AMN Healthcare sold an upsized $350 million of 8.5-year senior notes (Ba3/BB-).

However, with the market tone improving, the forward calendar grew to $3 billion, which is expected to price before the week draws to a close.

Meanwhile, the secondary space opened the day unchanged but roared into the market close following news of President Donald Trump’s imminent release from the hospital and renewed optimism surrounding a stimulus deal.

New paper remained the focus of trading activity.

While the deal was downsized and saw a weak break, j2 Global, Inc.’s 4 5/8% senior notes due 2030 (Ba3/BB) were trading up in high-volume activity on Monday.

Frontier Communications Corp.’s recently priced 5 7/8% first-lien senior secured notes due 2027 (B3/B+) continued their upward momentum in active trading.

Outside of recent deals, Tenet Healthcare Corp.’s 6 1/8% senior notes due 2028 (Caa1/CCC+/B) topped par for the first time since mid-September.

Monday’s primary

The junk bond market came roaring back on Monday, following Friday's selloff, sources said.

News flow in the new issue market was high as the Oct. 5 week got underway.

Only one deal priced.

AMN Healthcare sold an upsized $350 million amount (from $325 million) of 8.5-year senior notes (Ba3/BB-), pricing them at par to yield 4% in a drive-by.

The yield printed at the tight end of talk.

It played to an order book that was heard to be six-times oversubscribed, a trader said.

Meanwhile, the active new issue calendar saw a big buildup, finishing the day at $3 billion, all of which is set to price ahead of the coming extended Columbus Day holiday weekend (see related stories in this issue).

j2 Global in focus

j2 Global’s 4 5/8% notes due 2030 were in focus on Monday with the notes making gains after a weak break last Friday.

The 4 5/8% notes traded up to a 101-handle heading into the market close.

There was more than $34 million in reported volume during Monday’s session, making it among the most actively traded issues of the day, according to a market source.

The notes were on the rise alongside the general market which was strong on Monday.

They saw a weak break amid the market sell-off last Friday with the notes wrapped around par after the deal was downsized.

j2 Global priced a $750 million issue of the 4 5/8% notes at par.

The deal priced at the wide end of the 4½% to 4¾% price talk.

The deal was downsized from $1.2 billion.

While the books were reportedly full at the wide end of talk, several accounts walked away after the deal was tightened to 4 5/8%, a source said.

Frontier gains

Frontier’s recently priced 5 7/8% first-lien senior secured notes due 2027 continued their upward momentum in active trading on Monday.

The 5 7/8% notes started the day at 101¼ but gained strength alongside the broader market as the session progressed.

The notes were changing hands in the 101¾ to 101 7/8 context heading into the market close, a source said.

There was more than $28 million in reported volume during Monday’s session.

Frontier priced a $1.15 billion issue of the 5 7/8% notes at par on Oct. 1.

The bankruptcy exit financing deal was “a blowout,” a market source previously said, with the deal as much as 8x oversubscribed.

The heavy demand for the notes combined with improved market conditions were driving the notes higher on Monday.

Tenet tops par

Tenet’s 6 1/8% senior notes due 2028 topped par for the first time since mid-September on Monday.

The notes gained more than 2 points during the session.

They were marked at par ¼ bid heading into the market close.

The notes saw renewed attention with more than $17 million in reported volume on Monday.

Tenet’s 6 1/8% notes have struggled since the healthcare services company priced the $2.5 billion megadeal on Sept. 1.

However, the notes sold-off following Supreme Court Justice Ruth Bader Ginsberg’s death in mid-September on renewed uncertainty regarding the Affordable Care Act.

The notes traded down to a 95-handle following the news but have slowly recovered since.

In addition to the improved market tone on Monday, healthcare names have been in demand recently, a source said.

Indexes gain

Indexes were on the rise on Monday.

While all closed last Friday with losses amid the market sell-off, they still eked out cumulative gains the previous week.

The KDP High Yield Daily index rose 12 basis points to close Monday at 66.27 with the yield now 5.66%.

The index posted a cumulative gain of 42 bps on the week last week.

The ICE BofAML US High Yield index returned to positive territory on Monday after slipping into negative territory on Sept. 21.

The index gained 45.9 bps with the year-to-date return now 0.239%.

The index saw a cumulative gain of 87.3 bps on the week last week.

The CDX High Yield 30 index rose 79 bps to close Monday at 105.1.

The index posted a cumulative gain of 8 bps on the week last week.

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