
North American Bond Research – April 8, 2020
Posted on April 8, 2020
HIGH YIELD BOND RESEARCH
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April 8, 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) Frontier Communications Corp. 11% 9/15/2025 Sprint Corp. 7.125% 6/15/2024 Citigroup Inc. 6.125% PERP Macy’s Retail Hldg Inc. 3.625% 6/1/2024 Ford Motor Co. 4.346% 12/8/2026 Tenet Healthcare Corp. 8.125% 4/1/2022 Continental Res Inc. 4.5% 4/15/2023 General Motors Co. 4.875% 10/2/2023 Western Gas Partners LP 5.5% 8/15/2048 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. LifePoint Health Inc (USD) 6.75% 4/15/2025 144A (04/07/2020): 600MM First Lien Notes, Price at Issuance 100, Yielding 6.75%.
2. NCR Corp. (USD) 8.125% 4/15/2025 Reg S (04/07/2020): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 8.13%. 3. NCR Corp. (USD) 8.125% 4/15/2025 144A (04/07/2020): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 8.13%. 4. LifePoint Health Inc (USD) 6.75% 4/15/2025 Reg S (04/07/2020): 600MM First Lien Notes, Price at Issuance 100, Yielding 6.75%. 5. Wynn Resorts LTD. (USD) 7.75% 4/15/2025 Reg S (04/07/2020): 600MM Senior Unsecured Notes, Price at Issuance 100, Yielding 7.75%. 6. Wynn Resorts LTD. (USD) 7.75% 4/15/2025 144A (04/07/2020): 600MM Senior Unsecured Notes, Price at Issuance 100, Yielding 7.75%. |
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 |
Ascent Resources Marcellus LLC (USD) TL EXT L+650 12/31/2049 Wittur (EUR) TLB E+450 09/23/2026 Arvos Holding (EUR) TLB2 E+450 08/29/2021 Averys SA (EUR) TLB E+375 09/25/2025 Everi Payments Inc. (USD) TL L+300 05/09/2024 |
Prosol Gestion (EUR) TLB E+400 04/21/2024 Cerba HealthCare (EUR) TLB E+350 04/19/2024 Automatic Data Processing Inc. (USD) RC L+30 06/13/2023 Shearer’s Foods Inc. (USD) TL2 L+675 06/30/2022 Sebia SA (EUR) TLB E+300 10/24/2024 |
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 118 bp (basis points), as of 04/8/2020
- Net negative capital flows into high-yield ETFs & mutual funds
INVESTMENT GRADE BOND RESEARCH
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April 8, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Oracle Corp. 2.5% 4/1/2025 Oracle Corp. 3.6% 4/1/2050 Caterpillar Inc. 3.25% 4/9/2050 Oracle Corp. 3.85% 4/1/2060 Oracle Corp. 3.6% 4/1/2040 Caterpillar Inc. 2.6% 4/9/2030 VMWARE Inc. 4.5% 5/15/2025 Oracle Corp. 2.95% 4/1/2030 Walt Disney Co. 4.7% 3/23/2050 Oracle Corp. 2.8% 4/1/2027 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | New Issues [Continued] |
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1. Suncor Energy Inc. (CAD) 5% 4/9/2030 (04/07/2020): 1250MM Senior Unsecured Notes, Price at Issuance 99.697, Yielding 5.04%.
2. Bruce Power LP (CAD) 4% 6/21/2030 (04/07/2020): 600MM Senior Unsecured Notes, Price at Issuance 99.93, Yielding 4.01%. 3. Estee Lauder Cos Inc. (USD) 2.6% 4/15/2030 (04/07/2020): 700MM Senior Unsecured Notes, Price at Issuance 99.816, Yielding 2.62%. 4. Avangrid Inc. (USD) 3.2% 4/15/2025 (04/07/2020): 750MM Senior Unsecured Notes, Price at Issuance 99.871, Yielding 3.23%. 5. Mondelez International Inc. (USD) 2.125% 4/13/2023 (04/07/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.769, Yielding 2.2%. 6. Mondelez International Inc. (USD) 2.75% 4/13/2030 (04/07/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.032, Yielding 2.86%. 7. NiSource Inc. (USD) 3.6% 5/1/2030 (04/07/2020): 1000MM Senior Unsecured Notes, Price at Issuance 99.631, Yielding 3.64%. 8. Narragansett Electric Co. (USD) 3.395% 4/9/2030 144A (04/07/2020): 600MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.4%. 9. Narragansett Electric Co. (USD) 3.395% 4/9/2030 Reg S (04/07/2020): 600MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.4%. 10. Keurig Dr Pepper Inc. (USD) 3.2% 5/1/2030 (04/07/2020): 750MM Senior Unsecured Notes, Price at Issuance 99.743, Yielding 3.23%. |
Top Widening Loans | Top Narrowing Loans |
Ascent Resources Marcellus LLC (USD) TL EXT L+650 12/31/2049 Wittur (EUR) TLB E+450 09/23/2026 Arvos Holding (EUR) TLB2 E+450 08/29/2021 Averys SA (EUR) TLB E+375 09/25/2025 Everi Payments Inc. (USD) TL L+300 05/09/2024 |
Prosol Gestion (EUR) TLB E+400 04/21/2024 Cerba HealthCare (EUR) TLB E+350 04/19/2024 Automatic Data Processing Inc. (USD) RC L+30 06/13/2023 Shearer’s Foods Inc. (USD) TL2 L+675 06/30/2022 Sebia SA (EUR) TLB E+300 10/24/2024 |
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 118 bp (basis points), as of 04/8/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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