DirecTV, McLaren price low-grade bonds; McGraw-Hill struggles; Builders, Carnival at a premium

By Paul A. Harris and Abigail W. Adams

Portland, Me., July 22 – The domestic high-yield primary market continued to churn out new issues on Thursday with two issuers clearing the market.

DirecTV Entertainment Holdings LLC priced a $2.3 billion issue of six-year senior secured notes (Ba3/BB/BBB-) and McLaren Automotive priced a $620 million issue of five-year senior secured notes (Caa1/CCC+/B).

With the primary market unleashing a deluge of deals after a pause earlier in the week, new paper dominated activity in the secondary space, albeit with mixed trajectories.

McGraw-Hill Education, Inc.’s two tranches were struggling in the aftermarket with both dropping below par soon after breaking for trade.

Carnival Corp.’s 4% first-priority senior secured notes due 2028 (Ba2/BB-) and Ashton Woods USA LLC’s 4 5/8% senior notes due 2029 (B2/B) were trading with a premium in the secondary space although the notes remained on a par-handle.

Builders FirstSource, Inc.’s 4¼% senior notes due 2032 (B1/B+) traded more than 1 point above their issue price with the notes looking relatively cheap compared to industry peers.

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