
North American Bond Research – April 6, 2020
Posted on April 6, 2020
HIGH YIELD BOND RESEARCH
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April 6, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Intelsat Jackson Hldg SA 5.5% 8/1/2023 (1) General Motors Co. 6.25% 10/2/2043 Dish DBS Corp. 7.75% 7/1/2026 Micron Technology Inc. 4.663% 2/15/2030 Discover Financial Services VAR% PERP Ford Motor Co. 5.291% 12/8/2046 Charter Communications Operating LLC 4.8% 3/1/2050 Intelsat Luxembourg SA 8.125% 6/1/2023 Expedia Inc. 5% 2/15/2026 General Motors Financial Co. Inc. 4.375% 9/25/2021 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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(None Current 04/06/2020)
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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 |
TierPoint LLC (USD) TL L+725 04/27/2025 J Crew Group Inc. (USD) TLB L+322 03/06/2021 Safe Fleet Acquisition Corp. (USD) TL L+300 02/01/2025 Wittur (EUR) TLB E+450 09/23/2026 Arvos Holding (EUR) TLB2 E+450 08/29/2021 |
Air Canada (CAD) RC 12/18/2021 Hamilton Holdco LLC (USD) TLB L+200 01/02/2027 Prosol Gestion (EUR) TLB E+400 04/21/2024 Concordia International (EUR) TL E+525 09/06/2024 Automatic Data Processing Inc. (USD) RC L+30 06/13/2023 |
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 131 bp (basis points), as of 04/6/2020
- Net negative capital flows into high-yield ETFs & mutual funds
INVESTMENT GRADE BOND RESEARCH
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April 6, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Intel Corp. 3.9% 3/25/2030 Lloyds Banking Group PLC VAR% 7/9/2025 Cigna Corp. 3.4% 3/15/2050 Oracle Corp. 3.6% 4/1/2050 Ross Stores Inc. 5.45% 4/15/2050 Amgen Inc. 3.375% 2/21/2050 Wells Fargo & Co. 5.013% 4/4/2051 3M Co. 3.7% 4/15/2050 Oracle Corp. 2.5% 4/1/2025 Visa Inc. 2.05% 4/15/2030 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | New Issues [Continued] |
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1. Burlingtn NTHN San (USD) 3.05% 2/15/2051 (04/06/2020): 575MM Senior Unsecured Notes, Price at Issuance 99.171, Yielding 3.09%.
2. Tucson Electric Power Co. (USD) 4% 6/15/2050 (04/06/2020): 350MM Senior Unsecured Notes, Price at Issuance 99.138, Yielding 4.05%. 3. Analog Devices Inc. (USD) 2.95% 4/1/2025 (04/06/2020): 400MM Senior Unsecured Notes, Price at Issuance 99.496, Yielding 3.06%. 4. Mitsubishi Ufj Lease&Fin (USD) 3.637% 4/13/2025 (04/06/2020): 450MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.64%. 5. Pacificorp (USD) 3.3% 3/15/2051 (04/06/2020): 600MM Secured Notes, Price at Issuance 99.176, Yielding 3.34%. 6. BMW US Capital LLC (USD) 4.15% 4/9/2030 (04/06/2020): 1000MM Senior Unsecured Notes, Price at Issuance 99.854, Yielding 4.17%. 7. BMW US Capital LLC (USD) 3.8% 4/6/2023 (04/06/2020): 1500MM Senior Unsecured Notes, Price at Issuance 99.897, Yielding 3.84%. 8. Pacificorp (USD) 2.7% 9/15/2030 (04/06/2020): 400MM Secured Notes, Price at Issuance 99.82, Yielding 2.72%. 9. BMW US Capital LLC (USD) 3.9% 4/9/2025 144A (04/06/2020): 1500MM Senior Unsecured Notes, Price at Issuance 99.829, Yielding 3.94%. 10. Broadcom LTD (USD) 4.7% 4/15/2025 144A (04/06/2020): 2250MM Senior Unsecured Notes, Price at Issuance 99.99, Yielding 4.7%. |
Top Widening Loans | Top Narrowing Loans |
TierPoint LLC (USD) TL L+725 04/27/2025 J Crew Group Inc. (USD) TLB L+322 03/06/2021 Safe Fleet Acquisition Corp. (USD) TL L+300 02/01/2025 Wittur (EUR) TLB E+450 09/23/2026 Arvos Holding (EUR) TLB2 E+450 08/29/2021 |
Air Canada (CAD) RC 12/18/2021 Hamilton Holdco LLC (USD) TLB L+200 01/02/2027 Prosol Gestion (EUR) TLB E+400 04/21/2024 Concordia International (EUR) TL E+525 09/06/2024 Automatic Data Processing Inc. (USD) RC L+30 06/13/2023 |
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 131 bp (basis points), as of 04/6/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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