$5.7B yesterday? No Problem: High yield bond deals gain in strong trading mart

Yesterday’s rush of new high-yield issues are charting gains in post-break trading this morning amid continued strong market conditions. Seven deals priced Tuesday for over $5.7 billion in fresh supply.

A large chunk of that came from hospital operator HCA, which issued $1.25 billion each of 4.75% secured notes due 2023 and 5.875% senior notes due 2023. Both have traded higher this morning with the former active in a 100.125/100.375 context while the latter is pegged at 100.625/101 and changed hands at 101.125, according to market sources and trade data. Pricing at par yesterday afternoon represented the tight end off talk for the BB/Ba3 secured tranche and the wide end for the B-/B3 unsecured.

Among other deals completed yesterday, Vantage Drilling 7.5% secured notes due 2019 are indicated around par issue, while Radio Systems 8.375% second-lien notes due 2019 are bid 1.5 points higher after pricing at par in its market debut, according to sources. Dematic 9% PIK-toggle notes due 2016 are at 100.5-100.75, also from par.

Gains in new issues come amid a strong high-yield market with the HY CDX Index 19 tacking on another half a point this morning, to a 101.5-101.625 context, after rising nearly one point yesterday. This morning’s level is almost two points higher week-over-week. Cash benchmarks are also up with Chrysler 8.25% notes due 2021 trading at 109, half a point higher for the day and over a point higher on the week, and HD Supply 11.5% notes due 2020, which priced at par last week and bracketed 104 to start this week, are at 105/106 today, sources note. – Jon Hemingway

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