H&E Equipment drives by, firms; recent issues lose ground; funds plunge $2.19 billion

By Paul Deckelman and Paul A. Harris

New York, Aug. 17 – Activity in the recently busy high-yield primary market continued to moderate on Thursday, the second straight session during which only one new fully junk-rated, dollar-denominated deal priced, following a string of sessions which saw multiple offerings get done.

H&E Equipment Services, Inc., a heavy equipment manufacturing and services company, priced $750 million of eight-year notes in a quick-to-market offering.

Traders saw those new bonds trade up on active volume when they hit the aftermarket.

The pricing of the deal coincided with the news that H&E had been outbid in its effort to acquire equipment rental company Neff Corp. by United Rentals Inc. United Rentals’ existing bonds, including its recently priced 10.5-year issue, were lower on the day, though not on much volume.

Traders said that other recently priced deals continued to pace the Most Actives list, including issues from electric car manufacturer Tesla, Inc., golf and country club operator Club Corp. Holdings Inc. and fast-food eateries operator Restaurant Brands International Inc. All were seen lower on the day.

Statistical market performance measures turned lower across the board on Thursday after being mixed on Tuesday and again on Wednesday.

Another numerical indicator – flows of investor cash into or out of high-yield mutual funds and exchange-traded funds – fell sharply this week, according to numbers released on Thursday, as $2.19 billion left those funds.

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