Venture Global megadeal prices, gains on break; Cvent improves in junkland; Iqvia strong

By Abigail W. Adams

Portland, Me., May 19 – The domestic high-yield bond primary market priced one deal during Friday’s session.

However, that deal gave Friday the title as the single largest volume day of the year for new issuance and lifted the May 15 week to one of the busiest of the year.

Venture Global LNG Inc. priced an upsized $4 billion, from $3.5 billion, two-tranche offering of five-year and eight-year senior secured notes on Friday.

The deal played to heavy demand during bookbuilding and the notes had a strong break, closing the day at a premium to their issue price.

The deal lifted the weekly tally of junk-rated tranches to $6.65 billion with the May 15 week the fourth largest of the year for new issuance.

The active pace is expected to continue in the coming week with the calendar already robust.

Olympus Water US Holding Corp. (Solenis) is on deck with a $2.125 equivalent two-tranche offering.

Mobius Merger Sub, Inc.’s $400 million offering of seven-year senior secured notes (B2/B/B+) backing the buyout of MoneyGram International Inc. is also expected to price although guidance was heard to be widening out from the initial 10½% to 11% yield.

Meanwhile, the secondary space launched the day on firm footing but weakness set in midway through the session with the market closing the day largely flat, a source said.

The deals to clear the market during Thursday’s session had mixed performances in secondary activity.

Iqvia Holdings Inc.’s new 6½% senior notes due 2030 (Ba2/BB) were the strongest performers of the deals to price throughout the week with the notes shooting up to a 101-handle.

Capstone Borrower Inc.’s 8% senior secured notes due 2030 (B2/B-/BB) backing Blackstone’s buyout of Cvent Holding Corp. improved after a weak break, although they were unable to break above par.

Venture Global prices

Venture Global priced an upsized $4 billion two-tranche offering of five-year and eight-year senior secured notes on Friday, according to a market source.

The deal consisted of a $2 billion tranche of five-year senior secured notes (B1/BB/BB-) that priced at par to yield 8 1/8%.

Pricing came in the middle of talk for a yield of 8% to 8¼%, which comes on top of initial guidance.

The deal also consisted of a $2 billion tranche of eight-year secured notes that priced at par to yield 8 3/8%.

Pricing came at the midpoint of talk for a yield of 8¼% to 8½%, which was on top of initial guidance.

The deal was heavily oversubscribed and upsized from the initial $3.5 billion.

Books were heard to be playing to $6.8 billion in orders late Thursday.

Both tranches had a healthy break and closed the day at a premium to their issue prices.

The 8 1/8% notes due 2028 were trading in the par 1/8 to par ½ context in heavy volume.

There was $97 million on the tape.

The 8 3/8% notes due 2031 were changing hands in the par ½ to par ¾ context.

There was $117 million on the tape.

Iqvia outperforms

Iqvia Holdings’ 6½% senior notes due 2030 (Ba2/BB) were the outperformers of the deals to clear the market over the past week with the notes shooting up to a 101-handle.

The notes traded in the 101 to 101½ context throughout the session, sources said.

There was $56 million in reported volume.

Iqvia priced a $500 million tranche of the junk-rated 6½% notes at par in a Thursday drive-by as part of a two-tranche offering.

The deal also included an upsized $750 million, from $500 million, tranche of five-year senior secured notes (Baa3/BBB-), which priced at 99.993 to yield 5.702%.

Cvent improves

Cvent’s 8% senior secured notes due 2030 (B2/B-/BB) improved on Friday after a weak break although they were unable to surface above par.

The notes were marked at 99 5/8 bid, par 1/8 offered on Friday with several prints at par.

“They’re fighting back,” a source said.

There was $25 million in reported volume.

The notes had a weak break and closed the previous session at 99¾.

Cvent priced a downsized $400 million, from $500 million, issue of the 8% notes at par on Thursday.

Indexes

The KDP High Yield Daily index closed Friday flat at 50.31 with a yield of 7.44%.

The index fell 11 points Thursday, 3 points on Wednesday, 16 points on Tuesday and was flat on Monday.

The index posted a cumulative loss of 30 points on the week.

The ICE BofAML US High Yield index gained 7.2 basis points with the year-to-date return now 3.789%.

The index fell 19.5 bps on Thursday, 1.9 bps on Wednesday, 29.7 bps on Tuesday and 4.8 bps on Monday.

The index posted a cumulative loss of 48.7 bps on the week.

The CDX High Yield 30 index inched up 4 bps to close Friday at 100.27.

The index gained 15 bps on Thursday and 56 bps on Wednesday, fell 63 bps on Tuesday, and inched up 2 bps on Monday.

The index posted a cumulative gain of 14 bps.

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