HIGH YIELD BOND RESEARCH
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July 14, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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T-Mobile USA Inc. 3.875% 4/15/2030 144A T-Mobile USA Inc. 3.75% 4/15/2027 144A Western Midstream Operating, LP 4.05% 2/1/2030 Pacific Gas & Electric Co. 3.85% 11/15/2023 Washington Prime Group LP 5.95% 8/15/2024 Delta Airlines 7.375% 1/15/2026 Vale Overseas LTD 3.75% 7/8/2030 Pacific Gas & Electric Co. 4% 12/1/2046 Pacific Gas & Electric Co. 3.25% 6/15/2023 Carpenter Technology 6.375% 7/15/2028 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. JIU An Finance Co. LTD. (USD) 9.5% 7/17/2023 (07/13/2020): 300MM Senior Unsecured Notes, Price at Issuance 100, Yielding 9.5%.
2. Boise Cascade Corp. (USD) 4.875% 7/1/2030 144A (07/13/2020): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.88%. 3. Freeport-McMoRan Inc. (USD) 4.625% 8/1/2030 (07/13/2020): 850MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.63%. 4. Freeport-McMoRan Inc. (USD) 4.375% 8/1/2028 (07/13/2020): 650MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.38%. 5. Boise Cascade Corp. (USD) 4.875% 7/1/2030 Reg S (07/13/2020): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.88%. 6. Ultrapar International SA (USD) 5.25% 6/6/2029 (07/13/2020): 350MM Senior Unsecured Notes, Price at Issuance 99.994. |
1. Thyssenkrupp Elevator: $2.875B seven-year first-lien term loan B (B1/B/B+); ¬1.1015B seven-year first-lien first-lien term loan B (B1/B/B+)
2. Logmein Inc.: $3.55B credit facilities: $250MM Revolver; $2.7B first lien TL; $600MM second-lien TL 3. Alion Science & Technology Corp.: $400MM credit facilities: $40MM Revolver (Ba1/BB); $360MM TL (B1/BB-) 4. Authentic Brands Group LLC: $150MM TL (B2/B) 5. First Brands Group LLC: $710MM TL 6. Huntsworth PLC: $300MM TL 7. Agrofesh Solutions Inc.: $50MM covenant-lite TL 8. RSA: $1.425B credit facilities: $75MM revolver; $1B TL; $350MM TL 9. Huntsworth PLC: $300MM TL 10. Logmein Inc.: $3.55B credit facilities: $250MM Revolver; $2.7B first lien TL; $600MM second-lien TL |
Top Widening Loans | Top Narrowing Loans |
PortAventura World (EUR) TLB E+350 06/14/2024 AMC Networks Inc. (USD) TLA L+150 07/08/2023 Albertsons LLC (USD) TL L+275 11/17/2025 Revere Power LLC (USD) TLB L+425 03/29/2026 Cast & Crew Payroll LLC (USD) TLB L+375 02/07/2026 |
Syncreon Group BV (USD) TL 10/01/2024 Conduent Business Services LLC (USD) TLA L+175 12/07/2022 Distributed Power Inc. (USD) TLB L+325 11/02/2025 Del Monte Foods Co. (USD) TLB L+325 02/18/2021 Coty Inc. (EUR) TLA E+175 04/05/2023 |
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 15 bp (basis points), as of 07/14/2020
- Net negative capital flows into high-yield ETFs & mutual funds