IAA on tap; Carvana to price add-on; Sprint gains on merger news; Berry Global tranches mixed

By Paul A. Harris and Abigail W. Adams

Portland, Me., May 20 – The domestic high-yield primary market remained active on Monday despite the volatility that continued to roil equity markets.

While no deals priced during Monday’s session, the forward calendar continued to grow.

Carvana Co. plans to price a $250 million add-on to its 8 7/8% senior notes due Oct. 1, 2023 (expected ratings Caa2/CCC+) on Tuesday.

IAA, Inc. (Insurance Auto Auctions, Inc.) is in the market with a $400 million offering of eight-year senior notes, which is expected to price on Wednesday.

Obsidian Energy Ltd. announced it has engaged Pareto Securities to arrange meetings with fixed income investors ahead of a potential bond deal.

The European primary market also saw some activity with Novem Group GmbH planning to start a roadshow on Tuesday for a €375 million offering of five-year senior secured floating-rate notes (Ba3/B+).

Meanwhile, the secondary space was largely unchanged on Monday.

Sprint Corp.’s junk bonds were in focus and posting large gains as the market expressed optimism about its merger with T-Mobile despite mixed headlines.

Berry Global Group, Inc.’s recently priced tranches were mixed in high-volume activity with the second priority notes continuing to post gains while the first priority notes hovered at par.

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