Leveraged Finance Weekly: Hung Loan and Bond Debt Returns to Primary Market; Ritz-Carlton Yacht Sinks in Secondary

Reporting: Katherine Schwartz The primary market remained open this week, continuing a strong July with $15.4 billion of loans pricing alongside $3.6 billion of bonds. However, the vast majority of loans and bonds that priced were refinancings of existing debt. Of the $15.4 billion of loans that priced this week, $14 billion were repricings. Similarly, the bonds that priced this week were used to refinance existing bonds. Inflows slowed for loans to $750 million from $1.35 billion this week, while inflows to high-yield accelerated to $930 million from $530 million, according to a report by Bank of America. “The big story [this summer] is the explosion of new issue and refi,” said one high-yield investor who noted that the past few days have been slower compared with prior weeks. Among notable primary activity, Patterson returned to market, launching $500 million in senior secured notes and a $1 billion loan to repay and replace a $500 million secured bridge facility and fund its $4.1 billion buyout by Patient Square Capital, Octus reported this week. Although the deal was relaunched during an open window in the primary market for corporate issuers, pricing on both tranches for Patterson is now being talked wider[...]