Ford reopens junk primary, notes flat on break; Tenneco on tap; secondary awaits Fed day

By Abigail W. Adams

Portland, Me., Nov. 1 – The domestic high-yield primary market returned to action on Tuesday after nearly two weeks of no issuance.

Ford Motor Credit Co. LLC priced $1.5 billion of five-year senior notes (Ba2/BB+/BB+) in a Tuesday drive-by.

However, the new paper saw a lackluster start in the secondary space and was wrapped around the issue price after breaking for trade.

Meanwhile, early whispers surfaced for Pegasus Merger Co.’s $1 billion offering of six-year senior secured notes backing Apollo’s buyout of Tenneco Inc.

The secondary space saw a firm start to the day with the cash bond market up ¼ point at the open.

Then the JOLTS, or Job Openings and Labor Turnover Survey, report came out with numbers that were stronger than expected.

“After that we were down all day,” a source said.

The cash bond market closed down 1/8 point.

However, the secondary space was quiet with the market in “a holding pattern,” ahead of the Fed decision, a source said.

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