
North American Bond Research – April 2, 2020
Posted on April 2, 2020
HIGH YIELD BOND RESEARCH
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April 2, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Charter Communications Operating LLC 4.8% 3/1/2050 Petrobras Global Finance BV 7.375% 1/17/2027 Whiting Petroleum Corp. 6.625% 1/15/2026 American General Finance Corp. 7.75% 10/1/2021 Callon Petroleum Co. 6.125% 10/1/2024 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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(None Current 04/02/2020)
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1. AVI-SPL: $370MM covenant lite TLB (B2/B)
2. Service Logic: $140MM bank debt: $40MM TL; $100MM DD TL 3. CJ Foods Inc.: $285MM TLB 4. Cornerstone Ondemand Inc.: $1.135MM senior secured credit facilities: $150MM revolver; $985MM TLB 5. Eldorado Resorts Inc./Caesars Entertainment Corp.: $6.4B credit facilities:$1B revolver at Eldorados; $3B seven-year cove-lite TLB due 2027 at Eldorado; $2.4B seven-year cove-lite TLB due 2027 at Caesars Resorts Collection 6. Innovate Xcessories & Services LLC: $695MM credit facilities: $75MM revolver; $620MM TL(B2/B) 7. Instructure: $825MM senior secured credit facilities: $50MM revolver; $775MM TL 8. RSA: $1.425B credit facilities: $75MM revolver; $1B TL; $350MM TL 9. Snapav: $390MM term loans: $290MM TL (B2); $100MM TL 10. Tata Chemicals North America Inc. : $380MM TL (Ba3) |
Top Widening Loans | Top Narrowing Loans |
Cabot Microelectronics Corp. (USD) TLB L+200 11/15/2025 Olam Intl. LTD (USD) RC 09/28/2021 Tata Steel LTD (USD) TLA L+200 06/21/2024 Arvos Holding (EUR) TLB2 E+450 08/29/2021 B&M Retail LTD (GBP) TLA L+200 07/31/2021 |
New Arclin US Holding Corp (USD) TL L+875 02/14/2025 AI Convoy Luxembourg Sarl (USD) TL L+350 01/20/2027 Applovin Corp. (USD) TLB L+375 08/15/2025 Ascend Performance Materials LLC (USD) TLB L+525 08/27/2026 Hamilton Holdco LLC (USD) TLB L+200 01/02/2027 |
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- Symantec Corp., Broadcom LTD, Toll Brothers Inc., Cole-Parmer Instrument Co.
OVERALL CREDIT MARKET:
Long-term bond yields are expected to hit a cyclical peak in 2019 given tight fiscal policy and lagging global economies. Europe remains checked by stubbornly low inflationary forces. Positive effects remained in force:
- TED spread held below 137 bp (basis points), as of 04/2/2020
- Net negative capital flows into high-yield ETFs & mutual funds
INVESTMENT GRADE BOND RESEARCH
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April 2, 2020
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Key Gainers and Losers | Volume Leaders | |||||||||||||||||||||||||||||||||
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Oracle Corp. 3.6% 4/1/2050 Toyota Motor Credit Corp. 3.375% 4/1/2030 Goldman Sachs Group Inc. 3.5% 4/1/2025 Oracle Corp. 3.6% 4/1/2040 Visa Inc. 2.7% 4/15/2040 TJX Cos. Inc. 3.875% 4/15/2030 Oracle Corp. 2.5% 4/1/2025 HSBC Hldg PLC 4.95% 3/31/2030 Lowe’s Companies Inc. 5.125% 4/15/2050 Wells Fargo & Co. 5.013% 4/4/2051 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | New Issues [Continued] |
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1. TransCanada PipeLines LTD (CAD) 3.8% 4/5/2027 (04/01/2020): 2000MM Senior Unsecured Notes, Price at Issuance 99.841, Yielding 3.83%.
2. Equinor ASA (USD) 3% 4/6/2027 (04/01/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.506, Yielding 3.08%. 3. Penske Truck Leasing (USD) 4% 7/15/2025 144A (04/01/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.676, Yielding 4.07%. 4. Dollar General Corp. (USD) 3.5% 4/3/2030 (04/01/2020): 1000MM Senior Unsecured Notes, Price at Issuance 99.933, Yielding 3.51%. 5. Dollar General Corp. (USD) 4.125% 4/3/2050 (04/01/2020): 500MM Senior Unsecured Notes, Price at Issuance 98.997, Yielding 4.18%. 6. PPL Capital Funding Inc. (USD) 4.125% 4/15/2030 (04/01/2020): 1000MM Senior Unsecured Notes, Price at Issuance 99.966, Yielding 4.13%. 7. NextEra Energy Capital Holding Inc. (USD) 2.75% 5/1/2025 (04/01/2020): 1250MM Senior Unsecured Notes, Price at Issuance 99.858, Yielding 2.78%. 8. Anheuser-Busch Inbev Worldwide Inc. (USD) 4.5% 6/1/2050 (04/01/2020): 2250MM Senior Unsecured Notes, Price at Issuance 99.924, Yielding 4.5%. 9. Anheuser-Busch Inbev Worldwide Inc. (USD) 4.6% 6/1/2060 (04/01/2020): 1000MM Senior Unsecured Notes, Price at Issuance 99.916, Yielding 4.6%. 10. Anheuser-Busch Inbev Worldwide Inc. (USD) 3.5% 6/1/2030 (04/01/2020): 1750MM Senior Unsecured Notes, Price at Issuance 99.79, Yielding 3.52%. |
Top Widening Loans | Top Narrowing Loans |
Cabot Microelectronics Corp. (USD) TLB L+200 11/15/2025 Olam Intl. LTD (USD) RC 09/28/2021 Tata Steel LTD (USD) TLA L+200 06/21/2024 Arvos Holding (EUR) TLB2 E+450 08/29/2021 B&M Retail LTD (GBP) TLA L+200 07/31/2021 |
New Arclin US Holding Corp (USD) TL L+875 02/14/2025 AI Convoy Luxembourg Sarl (USD) TL L+350 01/20/2027 Applovin Corp. (USD) TLB L+375 08/15/2025 Ascend Performance Materials LLC (USD) TLB L+525 08/27/2026 Hamilton Holdco LLC (USD) TLB L+200 01/02/2027 |
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- Symantec Corp., Broadcom LTD, Toll Brothers Inc., Cole-Parmer Instrument Co.
OVERALL CREDIT MARKET:
Long-term bond yields are expected to hit a cyclical peak in 2019 given tight fiscal policy and lagging global economies. Europe remains checked by stubbornly low inflationary forces. Positive effects remained in force:
- TED spread held below 137 bp (basis points), as of 04/2/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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