Junkland clears another drive-by; DCP in focus, jumps on buyout; Ford improves

Chicago, Aug. 18 – Mid-August issuance represents the most active week in the junk bond primary market in approximately three months.

While the coast was clear, bookrunners moved one more issuer with a drive-by deal through pricing, resulting in an upsized add-on transaction that priced at the rich end of talk and notched higher on the break.

Meanwhile, it was an uneventful day in the secondary space with the cash bond market unchanged and trading volume thin as activity in recent issues fades.

DCP Midstream, LP was the name of the day on Thursday with its senior notes soaring after Phillips 66 announced a non-binding proposal to acquire all outstanding units of DCP for cash.

Ford Motor Co.’s 6.1% senior green notes due 2032 (Ba2/BB+) improved in heavy volume on Thursday although the notes remained on a par handle.

Royal Caribbean Group’s recently priced 11 5/8% senior notes due 2027 (B3/B) also remained active although with little movement in price.

Meanwhile, high-yield mutual and exchange-traded funds had their fourth consecutive week of inflows with $1.464 billion entering the space in the week through Wednesday’s close, according to the Refinitiv Lipper Fund Flows report.

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