Six issuers sell $3.8 billion; new notes struggle in secondary; funds add $1.24 billion

By Paul A. Harris and Abigail W. Adams

Portland, Me., June 18 – Six issuers brought a combined seven tranches of speculative-grade, dollar-denominated issuance, pricing a combined total face amount of $3.8 billion on Thursday.

All eyes were on PG&E Corp. as it priced a downsized $2 billion amount of senior secured notes (B1/BB-/BB) in two tranches as part of the financing for its exit from bankruptcy.

Also on Thursday, Gartner, Inc. priced an upsized $800 million, Brink's Co. priced a $400 million issue, Abercrombie & Fitch Management Co. priced an upsized $350 million issue, and Century Aluminum Co. priced $250 million of PIK notes.

Dana Inc. returned to the market to price a $100 million tap of its 5 3/8% senior notes due Nov. 15, 2027 at par.

Meanwhile, in the secondary Iron Mountain Inc.’s three tranches of senior notes (Ba3/BB) and Scientific Games Corp.’s 8 5/8% senior notes due 2025 (Caa2/B-) closed Thursday’s session below par.

However, Radio Systems Corp.’s 6¾% senior notes due 2025 outperformed with the notes shooting up in high-volume activity.

While the market was soft on Thursday, cash continued to enter the space with high-yield mutual and exchange-traded funds seeing inflows of $1.239 billion for the week through Wednesday’s close, according to the Refinitiv Lipper US Fund Flows report.

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