Primary prices $3.4 billion in seven tranches; forward calendar balloons to $9 billion; new deals trade up

By Paul A. Harris and Abigail W. Adams

Portland, Me., Sept. 14 – The domestic high-yield primary market launched the Sept. 14 week with a bang with six issuers pricing a cumulative $3.4 billion in seven tranches.

The active pace is expected to continue with $9 billion in junk-rated deals joining the forward calendar.

Meanwhile, the secondary space was firm on Monday although volume was light amid the massive buildup in the forward calendar.

New paper continued to dominate trading activity with several recent deals performing well.

Radiate Holdco LLC and Radiate Finance Inc.’s (Astound Broadband) two tranches of senior notes continued to gain in active trading on Monday with the unsecured tranche outperforming.

Tallgrass Energy Partners, LP and Tallgrass Energy Finance Corp.’s 7½% senior notes due 2025 (B1/BB-/BB-) and Avaya Holdings Corp.’s 6 1/8% senior secured notes (B2/B/BB-) were also on the rise with both issues trading up to a 102-handle.

Some of the recent deals from the lower side of the credit spectrum continued to perform well with Big River Steel LLC’s 6 5/8% senior notes due 2029 (Caa1/B) also hitting a 102-handle on Monday.

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