
North American Bond Research – July 15, 2020
Posted on July 15, 2020
HIGH YIELD BOND RESEARCH
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July 15, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Pacific Gas & Electric Co. 3.95% 12/1/2047 Delta Airlines 7.375% 1/15/2026 Delta Airlines 2.9% 10/28/2024 Pacific Gas & Electric Co. 4% 12/1/2046 Smithsonian Institution 2.645% 9/1/2039 Petrobras Global Finance BV 8.75% 5/23/2026 Western Midstream Operating, LP 3.1% 2/1/2025 Freeport-McMoRan Inc. 4.375% 8/1/2028 Freeport-McMoRan Inc. 4.625% 8/1/2030 Pacific Gas & Electric Co. 3.3% 12/1/2027 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. Pattern Energy Group LP (USD) 4.5% 8/15/2028 144A (07/14/2020): 700MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.5%.
2. Pattern Energy Group LP (USD) 4.5% 8/15/2028 Reg S (07/14/2020): 700MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.5%. 3. Carnival Corp. (USD) 10.5% 2/1/2026 144A (07/15/2020): 775MM Second Lien Notes, Price at Issuance 100, Yielding 10.5%. 4. Carnival Corp. (USD) 10.5% 2/1/2026 Reg S (07/15/2020): 775MM Second Lien Notes, Price at Issuance 100, Yielding 10.5%. 5. AdaptHealth LLC (USD) 6.125% 8/1/2028 144A (07/15/2020): 350MM Senior Unsecured Notes, Price at Issuance 100, Yielding 6.13%. 6. Joseph T Ryerson & Son Inc. (USD) 8.5% 8/1/2028 144A (07/15/2020): 500MM Secured Notes, Price at Issuance 100, Yielding 8.5%. 7. AdaptHealth LLC (USD) 6.125% 8/1/2028 Reg S (07/15/2020): 350MM Senior Unsecured Notes, Price at Issuance 100, Yielding 6.13%. 8. Joseph T Ryerson & Son Inc. (USD) 8.5% 8/1/2028 Reg S (07/15/2020): 100MM Secured Notes, Price at Issuance 100, Yielding 8.5%. |
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 |
Casper Bidco (EUR) TL E+850 07/30/2027 Unifrax Corp. (USD) TL2 L+850 12/14/2026 Distributed Power Inc. (EUR) TL E+800 11/02/2026 Automate Intermediate Hldg II Sarl (USD) TLB L+425 07/22/2026 Automate Intermediate Hldg II Sarl (EUR) TLB E+350 07/22/2026 |
Logoplaste (EUR) TLB E+400 10/31/2023 Tacala LLC (USD) TLB L+750 02/05/2028 ProFrac Services LLC (USD) TLB L+575 09/06/2023 Albertsons LLC (USD) TL L+275 11/17/2025 Orion EngineeRed Carbons Hldgs GmbH (USD) TLB L+200 07/25/2024 |
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 14 bp (basis points), as of 07/15/2020
INVESTMENT GRADE BOND RESEARCH
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July 15, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Australia & New Zealand Banking Grp 2.625% 11/9/2022 Anheuser-Busch Inbev Worldwide Inc. 4.9% 2/1/2046 Altria Group Inc. 4.8% 2/14/2029 Boeing Co. 4.875% 5/1/2025 Banco Santander SA 3.49% 5/28/2030 Verizon Communications Inc. 4.125% 3/16/2027 CVS Health Corp. 4.3% 3/25/2028 American Intl Group Inc. 3.4% 6/30/2030 Pacific Gas & Electric Co. 3.5% 8/1/2050 Oracle Corp. 3.85% 4/1/2060 |
Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | New Issues [Continued] |
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1. UDR Inc. (USD) 2.1% 8/1/2032 (07/14/2020): 400MM Senior Unsecured Notes, Price at Issuance 99.894, Yielding 2.11%.
2. HP Enterprise Services LLC (USD) 1.75% 4/1/2026 (07/14/2020): 750MM Senior Unsecured Notes, Price at Issuance 99.82, Yielding 1.78%. 3. HP Enterprise Services LLC (USD) 1.45% 4/1/2024 (07/14/2020): 1000MM Senior Unsecured Notes, Price at Issuance 99.883, Yielding 1.48%. 4. Canadian Imperial Bank of Commerce (CAD) VAR% 7/21/2030 (07/14/2020): 1000MM Subordinated Notes, Price at Issuance 99.962. 5. Tengizchevroil Finance Co. SAr.L (USD) 2.625% 8/15/2025 144A (07/15/2020): 500MM Secured Notes, Price at Issuance 99.412, Yielding 2.75%. 6. Tengizchevroil Finance Co. SAr.L (USD) 3.25% 8/15/2030 144A (07/15/2020): 750MM Secured Notes, Price at Issuance 98.939, Yielding 3.37%. 7. Multicare Health System (USD) 2.803% 8/15/2050 (07/15/2020): 300MM Unsecured Notes, Price at Issuance 100, Yielding 2.8%. 8. Drexel University (USD) 3.215% 5/1/2050 (07/15/2020): 104MM Unsecured Notes, Price at Issuance 100, Yielding 3.22%. |
Top Widening Loans | Top Narrowing Loans |
Casper Bidco (EUR) TL E+850 07/30/2027 Unifrax Corp. (USD) TL2 L+850 12/14/2026 Distributed Power Inc. (EUR) TL E+800 11/02/2026 Automate Intermediate Hldg II Sarl (USD) TLB L+425 07/22/2026 Automate Intermediate Hldg II Sarl (EUR) TLB E+350 07/22/2026 |
Logoplaste (EUR) TLB E+400 10/31/2023 Tacala LLC (USD) TLB L+750 02/05/2028 ProFrac Services LLC (USD) TLB L+575 09/06/2023 Albertsons LLC (USD) TL L+275 11/17/2025 Orion EngineeRed Carbons Hldgs GmbH (USD) TLB L+200 07/25/2024 |
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 14 bp (basis points), as of 07/15/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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