Five junk issuers sell $3.35 billion; PetSmart active; HCA up on earnings; Kraft Heinz gains

By Paul A. Harris and Abigail W. Adams

Portland, Ore., Feb. 2 – With a major East Coast winter storm in the rearview mirror, the high-yield new issue market came storming back on Tuesday.

Five issuers priced a combined six tranches of notes with a total face amount of $3.35 billion.

Only one of the five issuers had been in the market overnight. The rest drove through on Tuesday.

Meanwhile, the secondary space continued to improve with the cash bond market up about ¼ point as equities ripped and crude oil futures rallied.

PetSmart LLC and PetSmart Finance Corp.’s two tranches of senior notes remained active although the notes were little changed in high-volume activity.

As market players awaited the onslaught of deals in the pipeline, earnings and company-related notes jumpstarted activity in some outstanding issues.

Kraft Heinz Foods Co.’s senior notes were active with the capital structure gaining 2 to 3 points on news of an asset sale.

HCA Healthcare, Inc.’s 3½% senior notes due 2030 (Ba2/BB-/BB) also gained following the health care facility operator’s fourth-quarter earnings.

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