Americas Leveraged Finance Weekly: Primary Market Records Continued Buy-Side Demand During Shortened Holiday Week

Reporting: Caroline Hagood Market Overview Despite a short week after the market closed on Monday, Jan. 19, for Martin Luther King Jr. Day, primary issuance stayed busy as issuers continued to test strong demand for new paper. In total, Octus tracked 37 deals split between leveraged loans and high-yield bonds covering almost $38 billion of principal that were announced or priced this week. One high-yield bond investor noted that while the week got off to a slower start because of geopolitical macro volatility, market tone among participants improved quickly with spreads tightening across deals, underscoring buy-side appetite. This is the right time for corporate issuers to be hitting the primary market, said a leveraged finance banker this week, noting how well deals have been received so far this year with conditions continuing to be strong. Still, the banker noted that there is a rare exception for certain deals that may not get the best feedback from buy-side participants despite an enticing spread. A $1.2 billion leveraged loan financing Conga’s merger with Pros’ business-to-business division failed to price this week by the Jan. 21 commitment deadline amid investor skepticism, Octus reported. Deal changes are expected next week, including a wider margin[...]