Junk primary prices $3.65 billion; Triumph flat in secondary; Adient stumbles, recovers

By Paul A. Harris and Abigail W. Adams

Portland, Me., March 1 – March came into the high-yield primary market on Wednesday, if not like a lion then at least like one of the larger cats.

It was the biggest day in a month, with three issuers pricing $3.65 billion in a combined six tranches of dollar-denominated junk.

Meanwhile, it was another sideways day in the secondary space with the cash bond market either side of unchanged as rate concerns continued to weigh on the market.

The optimism about an end to the Federal Reserve’s rate hike campaign that drove the market higher in January has dissipated with several bad inflation prints over the past few weeks.

While the new issuance of January rode the optimism in the market to make large gains in the secondary space, that trend has ended with several recent deals falling flat.

Adient Global Holdings Ltd.’s secured and unsecured notes stumbled out of the gate but recovered to close the day with a nominal premium.

Triumph Group, Inc.’s 9% senior secured first-lien notes due 2028 (B2/CCC+) also fell flat in the aftermarket, despite what some considered cheap pricing.

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