Kosmos prices; CA Magnum joins packed junk calendar; Alliant at a premium

By Paul A. Harris and Abigail W. Adams

Portland, Me., Oct. 21 – The domestic high-yield primary market saw one deal price during Thursday’s session while more than $4 billion is set to price before the week draws to a close.

Kosmos Energy Ltd. priced a $400 million issue of 5.5-year senior notes (B3/B+/B).

Option Care Health Inc.’s $500 million offering of eight-year notes (B3/B-) and LABL, Inc. $1.21 billion two-part offering are on deck for Friday’s session.

However, it has been radio silence on the Monitronics International, Inc. (Brinks Home) $1.1 billion offering of seven-year senior secured first-lien notes due 2028 (Caa1/B-).

The coming week is also expected to be active with CA Magnum Holdings launching a roadshow for a $1.01 billion offering of five-year senior secured notes, the latest in a series of leveraged buyout financing transactions.

Meanwhile, the secondary space was soft on Thursday despite the strength in equity markets as a rising 10-year Treasury yield again pressured rate-sensitive names.

The 10-year Treasury yield shot past 1.7% on Thursday, closing the day at the session high of 1.702%.

However, trading activity in the secondary space remained muted with focus remaining on new issues.

Alliant Holdings Intermediate, LLC and Alliant Holdings Co-Issuer, Inc.’s recently priced tranches were trading at a premium to their issue prices despite the weakness in the market.

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