
North American Bond Research – August 19, 2020
Posted on August 19, 2020
HIGH YIELD BOND RESEARCH
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August 19, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Petrobras Global Finance BV 7.375% 1/17/2027 Ball Corp. 2.875% 8/15/2030 Ally Financial Inc. 3.875% 5/21/2024 CBL & Associates LP 5.25% 12/1/2023 Petrobras Global Finance BV 8.75% 5/23/2026 Petrobras Global Finance BV 6.85% 6/5/2115 Teva Pharmaceuticals Fin BV 6.75% 3/1/2028 Pacific Gas & Electric Co. 4.95% 7/1/2050 Howmet Aerospace Inc. 6.875% 5/1/2025 Vale Overseas LTD 6.25% 8/10/2026 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. Southwestern Energy Co. (USD) 8.375% 9/15/2028 (08/18/2020): 350MM Senior Unsecured Notes, Price at Issuance 100, Yielding 8.38%.
2. Range Resources Corp. (USD) 9.25% 2/1/2026 (08/18/2020): 300MM Senior Unsecured Notes, Price at Issuance 100, Yielding 9.25%. 3. HAT Hldg I LLC Hat Hldg II LLC (USD) 3.75% 9/15/2030 144A (08/18/2020): 375MM Senior Unsecured Notes, Price at Issuance 99, Yielding 3.87%. 4. HAT Hldg I LLC Hat Hldg II LLC (USD) 3.75% 9/15/2030 Reg S (08/18/2020): 375MM Senior Unsecured Notes, Price at Issuance 99, Yielding 3.87%. 5. ON Semiconductor Corp. (USD) 3.875% 9/1/2028 144A (08/18/2020): 700MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.88%. 6. iStar Inc. (USD) 5.5% 2/15/2026 (08/18/2020): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.5%. 7. ON Semiconductor Corp. (USD) 3.875% 9/1/2028 Reg S (08/18/2020): 700MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.88%. |
1. CJ Foods Inc.: $285MM TLB
2. Herschend Entertainment Co. LLC: $465MM TLB (B3/B) 3. UPC/Sunrise: $2.4B term loans (B1/BB-/BB+): $1.2B TLB1; $1.2B TLB2 4. Pike Corp.: $336MM TLB (Ba3/BB-) 5. MAG Aerospace: $290.7MM TL (B3/B) 6. CJ Foods Inc.: $285MM TLB 7. Herschend Entertainment Co. LLC: $465MM TLB (B3/B) 8. UPC/Sunrise: $2.4B term loans (B1/BB-/BB+): $1.2B TLB1; $1.2B TLB2 9. MAG Aerospace: $290.7MM TL (B3/B) 10. Logmein Inc.: $2.45B credit facilities: $1.95B first lien TL; $500MM second-lien TL |
Top Widening Loans | Top Narrowing Loans |
PDC Brands (USD) TLB L+475 06/29/2024 API Technologies Corp. (USD) TL L+425 05/09/2026 Lightstone Holdco LLC (USD) TLB L+375 01/30/2024 LogMeIn Inc. (USD) TLB L+475 08/14/2027 Web.com Group Inc. (USD) TL2 L+775 09/17/2026 |
Fleetpride Corp. (USD) TL L+450 12/19/2025 Tacala LLC (USD) TLB L+350 02/05/2027 American Tire Distributors Inc. (USD) TL DIP PIK L+600 09/01/2023 Wynn Resorts LTD. (USD) TL L+170 07/24/2025 Kindercare Education LLC (USD) TL L+825 08/16/2025 |
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 16 bp (basis points), as of 08/19/2020
- Net negative capital flows into high-yield ETFs & mutual funds
INVESTMENT GRADE BOND RESEARCH
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August 19, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Dow Chemical Co. 3.6% 11/15/2050 Oracle Corp. 3.6% 4/1/2050 Alphabet Inc. 2.25% 8/15/2060 Biogen Inc. 3.15% 5/1/2050 Santander UK Group Hldg PLC VAR% 8/21/2026 Cummins Inc. 1.5% 9/1/2030 Anthem Inc. 3.125% 5/15/2050 JPMorgan Chase & Co. VAR% 4/22/2051 Regeneron Pharmaceuticals Inc. 2.8% 9/15/2050 Alphabet Inc. 0.45% 8/15/2025 |
Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | New Issues [Continued] |
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1. Roper Technologies Inc. (USD) 1.4% 9/15/2027 (08/18/2020): 700MM Senior Unsecured Notes, Price at Issuance 99.86, Yielding 1.42%.
2. Roper Technologies Inc. (USD) 1.75% 2/15/2031 (08/18/2020): 1000MM Senior Unsecured Notes, Price at Issuance 99.839, Yielding 1.77%. 3. Community Health Network, Inc. (USD) 3.099% 5/1/2050 (08/18/2020): 449MM Unsecured Notes, Price at Issuance 100, Yielding 3.1%. 4. Roper Technologies Inc. (USD) 0.45% 8/15/2022 (08/18/2020): 300MM Senior Unsecured Notes, Price at Issuance 99.913, Yielding .49%. 5. Roper Technologies Inc. (USD) 1% 9/15/2025 (08/18/2020): 700MM Senior Unsecured Notes, Price at Issuance 99.868, Yielding 1.03%. 6. Athene Global Funding (USD) 2.45% 8/20/2027 (08/18/2020): 550MM Secured Notes, Price at Issuance 99.866, Yielding 2.47%. 7. Retail Properties of America (USD) 4.75% 9/15/2030 (08/18/2020): 400MM Senior Unsecured Notes, Price at Issuance 98.684, Yielding 4.92%. 8. Globe Life Inc. (USD) 2.15% 8/15/2030 (08/18/2020): 350MM Senior Unsecured Notes, Price at Issuance 99.822, Yielding 2.17%. 9. KKR Group Finance Co. VII LLC (USD) 3.5% 8/25/2050 144A (08/18/2020): 750MM Senior Unsecured Notes, Price at Issuance 99.1, Yielding 3.55%. 10. Athene Global Funding (USD) 2.45% 8/20/2027 Reg S (08/18/2020): 550MM Secured Notes, Price at Issuance 99.866, Yielding 2.47%. |
Top Widening Loans | Top Narrowing Loans |
PDC Brands (USD) TLB L+475 06/29/2024 API Technologies Corp. (USD) TL L+425 05/09/2026 Lightstone Holdco LLC (USD) TLB L+375 01/30/2024 LogMeIn Inc. (USD) TLB L+475 08/14/2027 Web.com Group Inc. (USD) TL2 L+775 09/17/2026 |
Fleetpride Corp. (USD) TL L+450 12/19/2025 Tacala LLC (USD) TLB L+350 02/05/2027 American Tire Distributors Inc. (USD) TL DIP PIK L+600 09/01/2023 Wynn Resorts LTD. (USD) TL L+170 07/24/2025 Kindercare Education LLC (USD) TL L+825 08/16/2025 |
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 16 bp (basis points), as of 08/19/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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