Frontier notes price to big demand, pique secondary interest; high-yield space steadies

By Paul A. Harris and Cristal Cody

Tupelo, Miss., Oct. 5 –With the stock indexes posting solid Wednesday gains – the S&P 500 index advanced 1.05% on the day – signals flashed green in the high-yield new issue market.

Five issuers priced single tranches, raising a combined total of $3.1 billion in a session replete with accelerated timings, and one upsize.

And all five of Tuesday's issuers priced their deals at the tight ends of price talk.

Frontier Communications Holdings, LLC and Frontier Communications Parent, Inc. priced the session's biggest deal, a $1 billion issue of 6% 8.25-year senior notes (Caa2/CCC+) that came at par.

Heard to have played to at least $2.5 billion of demand, the notes were “hanging on to par for dear life” late Tuesday afternoon, according to a bond trader who had them at par bid, par 1/8 offered.

In terms of demand, it followed the notes into the aftermarket.

“There’s a lot of trades today,” another source said. The notes, according to the second source “were hovering between par 5/8 and a low of 99 7/8.”

The notes were quoted closing the day at 99 7/8 bid, a market source said.

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