
North American Bond Research – December 9, 2020
Posted on December 9, 2020
HIGH YIELD BOND RESEARCH
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December 9, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Vale Overseas LTD 3.75% 7/8/2030 Citigroup Inc. VAR% PERP (4) United States STL Corp. New 6.25% 3/15/2026 Vale Overseas LTD 6.25% 8/10/2026 US Steel Corp. 6.875% 8/15/2025 United Rentals Inc. 4.875% 1/15/2028 Petrobras Global Finance BV 6.85% 6/5/2115 Occidental Petroleum Corp. 3.4% 4/15/2026 Pacific Gas & Electric Co. 4.55% 7/1/2030 Pacific Gas & Electric Co. 4.45% 4/15/2042 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. GrafTech International LTD (USD) 4.625% 12/15/2028 144A (12/08/2020): 500MM First Lien Notes, Price at Issuance 100, Yielding 4.63%.
2. Empire Communities Corp. (USD) 7% 12/15/2025 144A (12/08/2020): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 7%. 3. Jaguar Land Rover Automotive PLC (USD) 5.875% 1/15/2028 144A (12/08/2020): 650MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.88%. 4. Empire Communities Corp. (USD) 7% 12/15/2025 Reg S (12/08/2020): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 7%. 5. GrafTech International LTD (USD) 4.625% 12/15/2028 Reg S (12/08/2020): 500MM Secured Notes, Price at Issuance 100, Yielding 4.63%. 6. Guitar Center Inc. (USD) 8.5% 1/15/2026 144A (12/08/2020): 350MM Secured Notes, Price at Issuance 100, Yielding 8.5%. 7. Jaguar Land Rover Automotive PLC (USD) 5.875% 1/15/2028 Reg S (12/08/2020): 650MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.88%. 8. Dealer Tire LLC (USD) 8% 2/1/2028 (12/08/2020): 150MM Senior Unsecured Notes, Price at Issuance 103, Yielding 7.45%. 9. OneMain Financial Holdings Inc. (USD) 4% 9/15/2030 (12/08/2020): 850MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4%. 10. Occidental Petroleum Corp. (USD) 5.5% 12/1/2025 (12/08/2020): 750MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.5%. |
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 |
Casmar Holdings Australia PTY LTD (USD) TLB L+450 12/07/2023 Aptean Inc. (USD) TL L+850 04/24/2027 Altisource Portfolio Solutions (USD) TLB L+400 04/03/2023 NCL Corp. LTD (USD) TLA L+150 01/02/2024 Conduent Business Services LLC (USD) TLA L+175 12/07/2022 |
Vertical Midco GmbH (EUR) RC 01/14/2027 Ascena Retail Group Inc. (USD) DD L+1175 01/23/2021 Casper Bidco (EUR) TL E+850 07/30/2027 LTI Hldg Inc. (USD) TL L+475 07/24/2026 Samsonite IP Holdings SARL (USD) TLA L+150 04/19/2023 |
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 16 bps (basis points), as of 12/09/2020
- Net negative capital flows into high-yield ETFs & mutual funds
INVESTMENT GRADE BOND RESEARCH
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December 9, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Verizon Communications Inc. 2.875% 11/20/2050 Anheuser-Busch Inbev Worldwide Inc. 4.9% 2/1/2046 CVS Health Corp. 1.875% 2/28/2031 Boeing Co. 5.15% 5/1/2030 Juniper Networks Inc. 1.2% 12/10/2025 GE Capital Intl. Funding Co. 4.418% 11/15/2035 Juniper Networks Inc. 2% 12/10/2030 Block Financial LLC 3.875% 8/15/2030 HSBC Hldg PLC VAR% 5/18/2024 JPMorgan Chase & Co. VAR% 11/19/2031 |
Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | New Issues [Continued] |
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1. Charles Schwab Corp. (USD) VAR% PERP (12/08/2020): 2500MM Junior Subordinated Notes, Price at Issuance 100.
2. Gladstone Capital Corp. (USD) 5.125% 1/31/2026 (12/08/2020): 100MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.13%. 3. Charles Schwab Corp. (USD) 0.9% 3/11/2026 (12/08/2020): 1250MM Senior Unsecured Notes, Price at Issuance 99.878, Yielding .92%. 4. CBOE Hldgs Inc (USD) 1.625% 12/15/2030 (12/08/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.395, Yielding 1.69%. 5. Charles Schwab Corp. (USD) 1.65% 3/11/2031 (12/08/2020): 750MM Senior Unsecured Notes, Price at Issuance 99.804, Yielding 1.67%. 6. Toyota Motor Credit Corp. (USD) FLT% 12/13/2021 (12/08/2020): 2000MM Senior Unsecured Notes, Price at Issuance 100. 7. Summit Industrial Income Reit (CAD) 1.82% 4/1/2026 (12/08/2020): 200MM Senior Unsecured Notes, Price at Issuance 99.951, Yielding 1.83%. 8. Phoenician RE LTD. (USD) FLT% 12/14/2023 (12/09/2020): 95MM Unsecured Notes, Price at Issuance 100. |
Top Widening Loans | Top Narrowing Loans |
Casmar Holdings Australia PTY LTD (USD) TLB L+450 12/07/2023 Aptean Inc. (USD) TL L+850 04/24/2027 Altisource Portfolio Solutions (USD) TLB L+400 04/03/2023 NCL Corp. LTD (USD) TLA L+150 01/02/2024 Conduent Business Services LLC (USD) TLA L+175 12/07/2022 |
Vertical Midco GmbH (EUR) RC 01/14/2027 Ascena Retail Group Inc. (USD) DD L+1175 01/23/2021 Casper Bidco (EUR) TL E+850 07/30/2027 LTI Hldg Inc. (USD) TL L+475 07/24/2026 Samsonite IP Holdings SARL (USD) TLA L+150 04/19/2023 |
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 16 bps (basis points), as of 12/09/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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