Stericycle on tap; U.S. Renal expected; GCI gains continue; Neiman Marcus tanks

By Paul A. Harris and Abigail W. Adams

Portland, Me., June 4 – The majority of news from the domestic high-yield primary market came from cross-over trades on Tuesday.

Stericycle, Inc. started a roadshow on Tuesday for a $550 million split-rated offering of five-year senior notes (S&P: BBB-/Fitch: BB+), which is being run on the high-yield desk.

In another crossover trade, Vistra Energy Corp. priced $1 billion of split-rated senior secured notes (expected ratings Ba1/BBB-) in two tranches.

However, the deal was run off the investment-grade desk.

In a deal run from emerging markets desks, Navios Logistics South American unit Corporacion Navios SA is marketing an offering of senior secured notes in the 7% area.

While no new deals priced on Tuesday, there is an active forward calendar, which U.S. Renal Care Inc. is expected to soon join with a $505 million LBO deal.

Meanwhile, the secondary space was strong on Tuesday with the market off to the races as the Federal Reserve signaled it would be open to a rate cut.

While the overall market was up, Neiman Marcus Group’s recently priced 14% senior notes due 2024 were putting in a dismal performance in the secondary space.

The notes were trading up from their lows on Tuesday, but were still 8 points below their discounted issue price.

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