Junk: Transocean, Endo, EquipmentShare price; cruisers dip; funds lose $476.4 million

By Paul A. Harris and Abigail W. Adams

Portland, Me., April 11 – A busy session in the high-yield new issue market saw three issuers price a combined four tranches of notes to raise an overall total of $3.4 billion.

Two of the three issuers upsized their placements while one downsized.

All four tranches saw sharp executions that brought them at the tight ends of talk.

In drive-by action, Transocean Inc. priced an upsized $1.8 billion amount (from $1.5 billion) of priority guaranteed notes (Caa1/B-) in two tranches.

At the conclusion of a roadshow, Endo Finance Holdings, Inc. priced a downsized $1 billion issue (from $1.25 billion) of 8½% seven-year senior secured notes (B2/B+) at par.

And EquipmentShare.com, Inc. priced an upsized $600 million issue (from $500 million) of 8 5/8% eight-year senior secured second-lien notes (B3/B) at par.

Meanwhile, it was another soft day in the secondary space. The market was off another 1/8 to ¼ point with the latest round of macro data continuing to call into question the Fed’s rate cut path.

The cruisers were active with Carnival Corp.’s 6% senior notes due 2029 (B3/BB-) and Royal Caribbean Cruises Ltd.’s 6¼% senior notes due 2032 (Ba2/BB+) dipping alongside the broader market.

High-yield mutual funds and exchange-traded funds saw their second consecutive week of outflows with $476.4 million leaving the space in the week through Wednesday’s close.

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