Junk market hot, $4.6 billion prices in seven deals; MGM flat; ESAB holds premium

By Abigail W. Adams

Portland, Me., March 26 – The domestic high-yield primary market was on fire on Tuesday with seven deals totaling $4.6 billion clearing the market.

The deals played to heavy demand with four of the seven deals upsizing and six out of the seven offerings coming at the tight ends or pricing through talk.

While the European primary market still has a hefty load of deals to work through, Tuesday’s action leaves just one deal on the active forward calendar.

However, the shadow calendar continues to build as Genesee & Wyoming Inc. telegraphed its intention to offer $1 billion of secured notes while it announced plans to launch a $2.43 billion term loan.

Meanwhile, it was a sideways day in the secondary space on Tuesday with the market laser focused on new issuance.

ESAB Corp.’s 6¼% senior notes due 2029 (Ba1/BB+) and MGM Resorts International’s 6½% senior notes due 2032 (B1/BB-/BB-) dominated the tape as market players awaited the deals in the pipeline to break for trade.

While ESAB’s new notes were holding a nominal premium in heavy volume, MGM Resort’s new notes were flat.

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