Solenis, Weatherford on deck; secondary under pressure; Springs Window sinks further

By Paul A. Harris and Abigail W. Adams

Portland, Me., Sept. 20 – In the face of capital-market turbulence on Monday, as dramatic financial and political events in China create hazards for the global economy, the dollar-denominated high-yield primary market generated a reasonably steady volume of news.

No dollar deals priced, but the stage was set for an active Tuesday.

Solenis, in the market with a massive, multi-tranche buyout deal, downsized its four-part offering of high-yield notes by around $300 million equivalent.

Houston-based energy services provider Weatherford International Ltd. plans to price a $500 million offering of seven-year senior secured first lien notes.

The secondary space was under pressure on Monday as fear of a contagion from the prospective collapse of China Evergrande Group and the upcoming Federal Reserve meeting sparked a run from risk assets.

While the overall cash bond market was off about ½ to 1 point depending on the credit, volume remained light with accounts reluctant to sell despite the weakness in the market, a source said.

Accounts are still flush with cash that they will need to put to work. If the market volatility causes a slowdown in the new issue market, that money will get put to work in the secondary.

SWF Escrow Issuer Corp.’s (Springs Window Fashions) 6½% senior notes due 2029 (Caa2/CCC) continued to trend lower after a sloppy break.

Pactiv Evergreen Group Issuer Inc.’s 4 3/8% senior secured notes due 2028 (B1/B+) were also lagging their issue price.

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