Seven tranches for seven issuers; Weatherford in 102 range in HY; Solenis secureds lag

By Paul A. Harris and Abigail W. Adams

Portland, Me., Sept. 22 – A busy Wednesday in the dollar-denominated high-yield primary market had seven issuers, all with single-tranche deals, price a combined $3.18 billion face amount of junk.

Meanwhile, the secondary space continued to rebound from Monday’s rout with the cash bond market up another 1/8 point on the heels of the Federal Reserve’s latest announcement.

While bond tapering may begin following the Federal Reserve’s November meeting, chair Jerome H. Powell continued to stress patience related to rate hikes.

While the secondary space was strong, trading activity remained light outside of new issues, which were putting in mixed performances.

Weatherford International Ltd.’s 6˝% senior secured first-lien notes due 2028 (Ba3/B) outperformed in the secondary space with the notes up to a 102-handle by the market close.

Tempur Sealy International, Inc.’s 3 7/8% senior notes due 2031 were also trading with a large premium in the aftermarket.

However, Solenis LLC’s secured and unsecured tranches were mixed with the lower-coupon secured tranche lagging its issue price while the higher-coupon unsecured tranche traded with a slight premium.

Rocket Mortgage, LLC’s tranches (Ba1/BB+) were also mixed with the lower-coupon shorter-duration notes falling flat in the aftermarket while the longer-duration, higher-coupon notes traded with a premium.

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