Recent junk paper floods market; Uber, Kennedy-Wilson, Bombardier flat; NRG at a premium

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 10 – Five issuers priced single-tranche high-yield bond deals on Tuesday, raising a combined total of $1.65 billion.

Meanwhile, the tone in the secondary space was negative on Tuesday with a torrent of recent new paper and some selling pressure from exchange-traded funds contributing to the weakness in the space.

The majority of new deals that priced on Monday were gridlocked at par, a source said.

Those deals included Kennedy-Wilson, Inc.’s 4¾% senior notes due 2030 (B1/BB); Uber Technologies, Inc.’s 4½% senior notes due 2029 (B3/B-); and Bombardier Inc.’s 6% senior notes due 2028 (Caa1/CCC+).

“There was such an onslaught of deals, it was too much to handle,” a source said.

NRG Energy, Inc.’s 3 7/8% senior notes due 2032 (Ba2/BB+) were a notable exception. While the notes remained on a par-handle, they were trading at a premium to their issue price.

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