Junk secondary rallies; Neogen jumps; Frontier spikes; BB paper well bid; Charter gains

By Paul A. Harris and Abigail W. Adams

Portland, Me., July 7 – The domestic high-yield primary market remained quiet on Thursday although market players continue to eye a potential offering supporting the buyout of Tenneco Inc.

While the new issue calendar remains empty, there was an uptick of activity in the secondary space on Thursday as risk assets rallied.

Neogen Corp.’s 8 5/8% senior notes due 2030 (B2/BB) became one of the best performing new issues of 2022 with the notes trading at a large premium to their issue price.

Frontier’s 8¾% notes spiked in active trading on Thursday as buyers returned to the market.

While Treasuries remained under pressure with the 10-year Treasury yield again breaking above 3%, BB paper was particularly strong during Thursday’s session.

There was a multibillion-dollar pension fund inflow to the BB ex-energy space on Thursday “so it was extremely well bid,” a source said.

Charter subsidiary CCO Holdings LLC’s junk bonds (B1/BB-) were also on the rise in active trading.

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