Junk market goes for small deals in primary; Sunoco, Bonanza Creek move up in secondary

By Cristal Cody and Paul A. Harris

Tupelo, Miss., Oct. 6 – Against the backdrop of a steepening Treasury yield curve that is said to be putting pressure on risk assets three issuers priced bite-sized junk issues on Wednesday.

None exceeded $300 million and all priced at the tight or rich ends of talk.

In the secondary, the 4½% senior notes due 2030 (B1/BB-/BB) that Sunoco LP and Sunoco Finance Corp. priced late Tuesday held on to par through the early afternoon before trading higher than issuance by the close on over $81.5 million of volume.

The 6% second-lien secured notes due 2030 (Caa2/CCC+) that Frontier Communications Holdings, LLC and Frontier Communications Parent, Inc. sold Tuesday also saw nearly $70 million of bonds changing hands Wednesday. They stayed under par over the session.

Gannett Holdings LLC’s 6% first-lien senior secured notes due 2026 (B1//BB) that priced in an accelerated deal on Tuesday were pressured in heavy secondary action Wednesday, going out at 99 7/8 bid.

A timing-accelerated deal from Bonanza Creek Energy, Inc. saw a warmer reception over the day with the 5% senior notes due 2026 (B1/BB-/BB-) trading ½ point better than issuance.

Thor Industries, Inc.’s upsized $500 million of 4% senior notes due 2029 (B1/BB-) that priced in the prior session held its ground in secondary trading on Wednesday with the notes last seen at par.

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