First Quantum, XPO price drive-by junk deals; Venture Global megadeal on deck; McAfee weaker

By Abigail W. Adams

Portland, Me., May 17 – It was a busy session for the domestic high-yield primary market with two issuers pricing three junk-rated tranches in drive-by action and the forward calendar continuing to fill in.

First Quantum Minerals Ltd. priced an upsized $1.3 billion of eight-year senior notes and XPO Inc. priced $450 million eight-year unsecured notes (Ba3/BB-/BB+) and $830 million of split-rated five-year senior secured notes (Ba1/BBB-/BBB-) in drive-by action.

While Wednesday marked the first new paper of the week, the calendar continued to fill in with Venture Global LNG Inc. announcing a $3.5 billion two-tranche offering of secured and unsecured notes.

While the pricing of the megadeal was initially slated for Friday, timing may be accelerated to Thursday’s session.

Meanwhile, there was an uptick of activity in the secondary space on Wednesday as the market tone improved after selling pressure began to set in the previous session.

First Quantum’s new paper dominated activity after freeing for trade although the notes saw a weak break and were lagging their issue price.

Condor Merger Sub, Inc.’s (McAfee Corp.) 7 3/8% senior notes due 2030 (Caa2/CCC+) were weaker in heavy volume.

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