Junk market prices three deals; Square improves; Hilcorp struggles in secondary

By Paul A. Harris and Abigail W. Adams

Portland, Me., May 7 – The dollar-denominated new issue market remained active on Tuesday, while the euro-denominated market reactivated on the heels of Monday’s holiday in the United Kingdom.

Meanwhile, it was another new issue focused day in the secondary space as the market digested the $4.7 billion in new supply that priced the previous session.

While a sideways day in the secondary space with the cash bond market either side of unchanged, the majority of new paper traded at or at a premium to issue prices.

Block, Inc.’s new 6½% senior notes due 2032 (Ba2/BB+/BB+) dominated the tape with the notes improving in heavy volume after a flat break.

Genesis Energy, LP/Genesis Energy Finance Corp.’s 7 7/8% senior notes due 2032 (B3/B) continued their upward momentum with the notes the outperformers of Monday’s deals.

However, Freedom Mortgage Holdings LLC’s new 9 1/8% senior notes due 2031 (B2/B/B+) and Graphic Packaging International, LLC’s 6 3/8% senior notes due 2032 (Ba2/BB) fell flat with the notes remaining wrapped around par.

Hilcorp Energy I, LP’s 6 7/8% senior notes due 2034 (Ba2/BB+) were the outlier with the notes struggling on the break and sinking further below par during Tuesday’s session.

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