
North American Bond Research – December 8, 2020
Posted on December 8, 2020
HIGH YIELD BOND RESEARCH
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December 8, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Pacific Gas & Electric Co. 3.3% 12/1/2027 Pacific Gas & Electric Co. 4.45% 4/15/2042 Dollar General Corp. 3.25% 4/15/2023 General Motors Co. 5.2% 4/1/2045 United States STL Corp. New 6.25% 3/15/2026 Starwood Property Trust Inc. 5% 12/15/2021 Teva Pharmaceuticals Fin BV 6.75% 3/1/2028 Pacific Gas & Electric Co. 4.55% 7/1/2030 Equinix Inc. 5.375% 5/15/2027 Transocean Inc. 6.8% 3/15/2038 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. Kraton Polymers LLC (USD) 4.25% 12/15/2025 144A (12/07/2020): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.25%.
2. Kraton Polymers LLC (USD) 4.25% 12/15/2025 Reg S (12/07/2020): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.25%. |
1. Adtalem: $1.4B credit facilities: $400MM revolver; $1B TLB
2. American Public Education Inc.: $195MM credit facilities: $20MM revolver; $175MM TLB 3. Commercehub Inc.: $790MM senior credit facilities: $50MM revolver; $530MM TLB; $210MM TL 4. Zaxby’s Operating Co LP: $975MM credit facilities: $100MM revolver; $625MM TLB; $250MM TL 5. Provation Software Group Inc.: $330MM TLs: $250MM TL; $80MM TL2 6. Ozark Holdings LLC: $400MM TLB 7. Unified Women’s Healthcare LP: $560MM TLs: $420MM TLB (B-); $140MM TL 8. Zaxby’s Operating Co LP: $975MM credit facilities: $100MM revolver; $625MM TLB; $250MM TL 9. Unified Women’s Healthcare LP: $560MM TLs: $420MM TLB (B-); $140MM TL 10. Railworks: $280MM credit facilities: $230MM TLB; $50MM revolver |
Top Widening Loans | Top Narrowing Loans |
Pfleiderer AG (EUR) TLB E+500 04/13/2024 CSM Bakery (USD) TL L+1000 02/04/2022 Transplace (USD) TL L+375 10/10/2024 Casper Bidco (EUR) TL E+850 07/30/2027 GGP Inc. (USD) TLB L+250 08/24/2025 |
Aptean Inc. (USD) TL L+850 04/24/2027 StandardAero (USD) TL L+350 04/08/2026 Garrett Motion (USD) TLB L+250 09/27/2025 Averys SA (EUR) TLB E+825 09/25/2026 Greenway Health LLC (USD) TL L+375 02/16/2024 |
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 16 bps (basis points), as of 12/08/2020
- Net negative capital flows into high-yield ETFs & mutual funds
INVESTMENT GRADE BOND RESEARCH
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December 8, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Wells Fargo & Co. 5.013% 4/4/2051 Exxon Mobil Corp. 1.571% 4/15/2023 Verizon Communications Inc. 3% 11/20/2060 Abbvie Inc. 2.3% 11/21/2022 Charles Schwab Corp. 5.375% PERP Oneok Inc. 6.35% 1/15/2031 Verizon Communications Inc. 2.875% 11/20/2050 Morgan Stanley VAR% 7/22/2028 Verizon Communications Inc. 4.016% 12/3/2029 Bank of America Corp. VAR% 7/21/2028 |
Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | New Issues [Continued] |
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1. Systems Energy Resources Inc. (USD) 2.14% 12/9/2025 (12/07/2020): 200MM First Lien Notes, Price at Issuance 99.967, Yielding 2.15%.
2. CVS Health Corp (USD) 1.875% 2/28/2031 (12/07/2020): 1250MM Senior Unsecured Notes, Price at Issuance 99.988, Yielding 1.88%. 3. Guardian Life Global Funding (USD) 0.875% 12/10/2025 144A (12/07/2020): 500MM Secured Notes, Price at Issuance 99.932, Yielding .89%. 4. Key Bank NA (USD) VAR% 1/3/2024 (12/07/2020): 750MM Senior Unsecured Notes, Price at Issuance 100. 5. Nasdaq Inc. (USD) 1.65% 1/15/2031 (12/07/2020): 650MM Senior Unsecured Notes, Price at Issuance 99.667, Yielding 1.69%. 6. Morgan Stanley (USD) VAR% 12/10/2026 (12/07/2020): 2500MM Senior Unsecured Notes, Price at Issuance 100. 7. Nasdaq Inc. (USD) 0.445% 12/21/2022 (12/07/2020): 600MM Senior Unsecured Notes, Price at Issuance 100, Yielding .45%. 8. Key Bank NA (USD) FLT% 1/3/2024 (12/07/2020): 350MM Senior Unsecured Notes, Price at Issuance 100. 9. Nasdaq Inc. (USD) 2.5% 12/21/2040 (12/07/2020): 650MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2.5%. 10. Canadian Imperial Bank of Commerce (USD) FLT% 12/14/2023 (12/07/2020): 600MM Senior Unsecured Notes, Price at Issuance 100. |
Top Widening Loans | Top Narrowing Loans |
Pfleiderer AG (EUR) TLB E+500 04/13/2024 CSM Bakery (USD) TL L+1000 02/04/2022 Transplace (USD) TL L+375 10/10/2024 Casper Bidco (EUR) TL E+850 07/30/2027 GGP Inc. (USD) TLB L+250 08/24/2025 |
Aptean Inc. (USD) TL L+850 04/24/2027 StandardAero (USD) TL L+350 04/08/2026 Garrett Motion (USD) TLB L+250 09/27/2025 Averys SA (EUR) TLB E+825 09/25/2026 Greenway Health LLC (USD) TL L+375 02/16/2024 |
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 16 bps (basis points), as of 12/08/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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