Lycra, BBA price; Thursday’s deals mixed; California Resources, United Rentals drops

By Abigail W. Adams and Paul A. Harris

Portland, Me., April 20 – The domestic and European high-yield primary market rounded out an active week with four deals pricing and several more on the forward calendar.

Lycra Co. priced an upsized $1 billion equivalent of senior secured notes (B1/B) in dual-currency tranches.

BBA Aviation priced a $500 million issue of eight-year senior notes (Ba2/BB) at par to yield 5 3/8%.

The April 16 week in the primary market came to an orderly conclusion on Friday, with the entire expected calendar of deals for the week clearing, which should prompt further issuance, sources said.

Meanwhile, the secondary performance of recently priced deals remained mixed.

New paper from Lycra, Apergy Corp. and LSB Industries, Inc. was seen up 1 to 2 points in the secondary market while new bonds from Nufarm Ltd. and Commercial Metals Co. were seen hovering just above their issue price.

Despite a drop off in equities, the high-yield market firmed on Friday with the overall market up 1/8 to ¼ point, a market source said.

While the overall market was up, the energy sector slumped. California Resources Corp.’s 8% senior notes due 2022 were down 2 points on Friday after a 1 point drop on Thursday.

United Rentals Inc.’s 4 7/8% senior notes due 2028 (Ba3/BB-) were down 2 points on the week even though the company’s first quarter earnings report on Wednesday beat expectations.

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