Secondary pulls back; SPX at a premium; rate-sensitive names lower; Cleveland-Cliffs gains

By Paul A. Harris and Abigail W. Adams

Portland, Me., March 21 – The high-yield new-issue market remained quiet on Monday, with no deals announced and no deals pricing.

At Monday's close, the active forward calendar contained just one deal.

Owens & Minor Inc. plans to price a $500 million offering of eight-year senior notes (B2/B/BB-) this week.

The acquisition financing notes are in the market with initial guidance in the 7% area.

Meanwhile, selling pressure returned to the secondary space on Monday as the market pulled back from last week’s head-spinning rally.

While the market opened with a firm tone, it turned negative following hawkish comments from Federal Reserve Chair Jerome Powell and a surging 10-year Treasury yield.

Rate-sensitive remained the hardest hit amid the move in Treasuries with Charter subsidiary CCO Holdings LLC’s junk bonds again on the decline.

While CCC credits were also under pressure on Monday, SPX Flow, Inc. (Redwood Star Merger Sub, Inc.) 8¾% notes due 2030 (Caa2/CCC+) were trading at a premium to their deeply discounted issue price.

Cleveland-Cliffs Inc.’s capital structure received a boost following news the company would redeem its 2025 notes.

DaVita Inc.’s senior notes made an appearance on the tape with the notes down slightly in high-volume activity.

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