
North American Bond Research – March 4, 2020
Posted on March 4, 2020
HIGH YIELD BOND RESEARCH
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March 4, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||
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HCA Inc. 3.5% 9/1/2030 Petrobras Global Finance BV 6.85% 6/5/2115 Charter Communications Operating LLC 4.8% 3/1/2050 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. Science Applications (USD) 4.875% 4/1/2028 (03/04/2020): 400MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.88%.
(None Current 03/04/2020)
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1. Service Logic: $140MM bank debt: $40MM TL; $100MM DD TL
2. Whole Earth Brands (ACT II GLOBAL ACQUISTION CORP.):: $235 MM credit facilities: $50MM reolver; $185MM term A 3. Lakeview Loan Servicing LLC: $550MM TLB 4. Innovate Xcessories & Services LLC: $695MM credit facilities: $75MM revolver; $620MM TL(B2/B) 5. Grosvenor Capital Management: $344MM TLB 6. Eldorado Resorts Inc./Caesars Entertainment Corp.: $6.4B credit facilities:$1B revolver at Eldorados; $3B seven-year cove-lite TLB due 2027 at Eldorado; $2.4B seven-year cove-lite TLB due 2027 at Caesars Resorts Collection 7. Duff & Phelps: $1.75B credit facilities: $200MM revolver; $1.55B TLB 8. Cornerstore Ondemand Inc.: $1.135MM senior secured credit facilities: $150MM revolver; $985MM TLB 9. CJ Foods Inc.: $285MM TLB 10. Cincinnati Bell Inc.: $1.12B senior secured credit facilities: $200M revolver; $920MM TL |
Mattamy Group. The most recent data showed money flowed in of ETF/mutual funds for the week ended 01/10/2020, with a net inflow of $9.8 billion.
Top Widening Credit Default Swaps (CDS) | Top Narrowing Credit Default Swaps (CDS) |
Rite Aid Corp. (5Y Sen USD MR14) Weatherford International LTD (5Y Sen USD MR14) Hertz Corp. (5Y Sen USD CR14) |
Ghana, Republic of (5Y Sen USD CR14) Road King Infrastructure LTD (5Y Sen USD CR14) Road King Infrastructure LTD (5Y Sen USD MR14) |
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 02/28/2020
- Net negative capital flows into high-yield ETFs & mutual funds
INVESTMENT GRADE BOND RESEARCH
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March 4, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||
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Southern California Edison Co. 3.65% 2/1/2050 McDonald’s Corp. 3.625% 9/1/2049 Cigna Corp. 4.9% 12/15/2048 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | New Issues [Continued] |
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1. Texas Instruments Inc. (USD) 1.375% 3/12/2025 (03/03/2020): 750MM Senior Unsecured Notes, Price at Issuance 99.851, Yielding 1.41%.
2. Entergy Louisiana LLC (USD) 2.9% 3/15/2051 (03/03/2020): 350MM Secured Notes, Price at Issuance 99.755, Yielding 2.91%. 3. Canadian Pacific Railway Co. (USD) 2.05% 3/5/2030 (03/03/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.802, Yielding 2.07%. 4. Sherwin Williams Co. (USD) 2.3% 5/15/2030 (03/03/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.979, Yielding 2.3%. 5. Sherwin Williams Co. (USD) 3.3% 5/15/2050 (03/03/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.823, Yielding 3.31%. 6. McDonald’s Corp. (USD) 1.45% 9/1/2025 (03/03/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.816, Yielding 1.48%. 7. McDonald’s Corp. (USD) 2.125% 3/1/2030 (03/03/2020): 750MM Senior Unsecured Notes, Price at Issuance 99.946, Yielding 2.13%. 8. American Electric Power Co. Inc. (USD) 2.3% 3/1/2030 (03/03/2020): 400MM Senior Unsecured Notes, Price at Issuance 99.956, Yielding 2.3%. 9. American Electric Power Co. Inc. (USD) 3.25% 3/1/2050 (03/03/2020): 400MM Senior Unsecured Notes, Price at Issuance 99.829, Yielding 3.26%. 10. eBay Inc. (USD) 1.9% 3/11/2025 (03/04/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.782, Yielding 1.95%. |
Top Widening Loans | Top Narrowing Loans |
Arvos Holding (EUR) TLB2 E+450 08/29/2021 Novacap SA (EUR) TLB E+350 06/22/2023 Mattress Firm (USD) TL EXIT 11/21/2022 Unifrax Corp. (EUR) TLB E+375 12/14/2025 Orion EngineeRed Carbons Hldgs GmbH (USD) TLB L+200 07/25/2024 |
Advanced Energy Industries Inc. (USD) TLA 09/10/2024 Playa Resorts Holding BV (USD) TLB L+325 04/27/2024 Swissport Financing SA R.L. (EUR) TLB E+475 08/09/2024 Alorica (USD) TL L+375 06/30/2022 ConvergeOne LLC (USD) TL L+500 01/04/2026 PowerTeam Services LLC (USD) TL L+325 03/05/2025 |
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 15 bp (basis points), as of 02/28/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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