Junk calendar full, but market waits; Horizon Pharma takes a hit; Newell lower; PGT gains

By Abigail W. Adams

Portland, Me., May 16 – The domestic high-yield bond primary market was quiet on Tuesday after a substantial buildup in the forward calendar the previous session.

Four dollar-denominated tranches with a face value of $2.93 billion are set to price before the week closes, with more issuers expected to tap the market.

The secondary space was equally quiet with few making moves as debt ceiling negotiations dragged on.

“Wait and see” seemed to be the general theme with the market in wait-and-see mode through the Federal Open Market Committee announcement in early May and now in wait-and-see mode for debt negotiations.

The cash bond market had a soft open with selling pressure accelerating as the session progressed.

The cash bond market closed the day down 3/8 point with the CDX index falling 5/8 point to a 99-handle.

With activity surrounding new issues tempering, topical news was the driver of activity in the space.

Newell Brands Inc.’s senior notes were weaker in active trade after the company slashed the dividend of its common stock.

Horizon Pharma USA, Inc.’s 5½% senior notes due 2027 (Ba2/B+) took a hit following news the Federal Trade Commission was preparing to block Amgen’s $28.3 billion acquisition of the company.

PGT Innovations, Inc.’s 4 3/8% senior notes due 2029 (B1/B+) made large gains in active trade on Tuesday.

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