Junk: Cvent, Iqvia price; First Quantum struggles in secondary; funds lose $1.15 billion

By Abigail W. Adams

Portland, Me., May 18 – The domestic high-yield primary market remained active on Thursday with two issuers pricing $900 million in junk-rated tranches.

Capstone Borrower Inc. priced a downsized $400 million offering of seven-year senior secured notes (B2/B-/BB) backing Blackstone’s acquisition of Cvent Holding Corp.

In keeping with a recent trend, the notes saw a weak break and closed below issue price.

In drive-by action, Iqvia Holdings Inc. priced an upsized $1.25 billion offering of investment-grade secured notes and junk-rated unsecured notes.

The calendar remains robust with Venture Global LNG Inc.’s $3.5 billion offering of secured and unsecured notes slated to price on Friday and three deals on deck for the May 22 week.

Venture Global’s megadeal will lift the May 15 week to one of the top five highest volume weeks of the year for new deal activity.

However, it is not likely to claim the title of the busiest with bank loans continuing to capture some market share.

First Quantum Minerals Ltd.’s new 8 5/8% senior notes due 2031 (B+/B+) were lower in active trade after closing the previous session on a 99-handle.

XPO Inc.’s secured and unsecured tranches were also lagging their issue price in secondary activity.

Outflows continued to weigh on the market with high-yield mutual funds and ETFs seeing $1.15 billion leave the space.

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