Another $2.1 billion in junk bond primary; Lumen flat; Precision Drilling at a premium

By Paul A. Harris and Abigail W. Adams

Portland, Me., June 3 – The new issue market put up another $2.1 billion in three U.S. dollar-denominated tranches on Thursday.

Meanwhile, the secondary space was soft on Thursday with concern over inflation and a tapering of the Federal Reserve’s bond buying program weighing on the market, sources said.

New issues continued to dominate the tape although with mixed trajectories.

Lumen Technologies’ 5 3/8% senior notes due 2029 (B2/BB-/BB) fell flat in high-volume activity.

However, Precision Drilling Corp.’s 6 7/8% senior notes due 2029 (B3/B/B+) were trading at a premium to their discounted issue price.

Outside of recent issues, several issues in Bombardier’s capital structure were active and posting gains on the heels of the company’s latest deal and tender offer for its 2022 and 2023 notes.

Meanwhile, the outflows continued with high-yield mutual and exchange-traded funds seeing $385 million leave the space in the week through Wednesday’s close, according to the Refinitiv Lipper US Fund Flows report.

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