TriNet, CDK Global price; Carnival buoyed in heavy market; Scotts Miracle-Gro clipped

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 2 – The high-yield new issue market appeared to be gaining some momentum as July gave way to August.

Since Monday (July 31) the primary market generated $2.46 billion of proceeds in four tranches, with another $1.7 billion of announced and/or telegraphed business on the forward calendar.

However, the supportive capital markets backdrop vanished, ahead of the Wednesday open, following the Tuesday announcement by Fitch Ratings that it downgraded the United States of America’s long-term foreign currency rating, sources said.

On the heels of that announcement the yield of the 10-year Treasury spiked to a year-to-date high (closing at 4.09% on Wednesday) while the S&P 500 stock index fell 1.38% on the day.

While it was a rough day for the secondary space on Wednesday, Carnival Corp.’s new 7% first-priority senior secured notes due 2028 (Ba2/BB-) stayed afloat with the notes improved after falling flat on the break.

LifePoint Health Inc.’s recently priced 9 7/8% senior secured notes due 2030 (B2/B) continued to lose ground with the notes falling 3/8 to ½ point to break below a 99-handle.

While the market was down across the board, it was earnings that drove the largest loser during Wednesday’s session.

Scotts Miracle-Gro Co.’s senior notes (B1/B) fell 2 to 3½ points after posting disappointing numbers.

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