
North American Bond Research – May 20, 2020
Posted on May 20, 2020
HIGH YIELD BOND RESEARCH
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May 20, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Ford Motor Co. 9% 4/22/2025 Ford Motor Co. 8.5% 4/21/2023 Petrobras Global Finance BV 7.375% 1/17/2027 General Motors Co. 5.2% 4/1/2045 Goodyear Tire & Rubber Co. 9.5% 5/31/2025 DCP Midstream Operating LP 7.375% PERP Petrobras Global Finance BV 6.85% 6/5/2115 Radian Group Inc. 6.625% 3/15/2025 EQT Midstream Partners LP 4.75% 7/15/2023 Teva Pharmaceutical Industries LTD 3.15% 10/1/2026 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. Clearway Energy Operating (USD) 4.75% 3/15/2028 Reg S (05/19/2020): 250MM Senior Unsecured Notes, Price at Issuance 102, Yielding 4.44%.
2. Cushman & Wakefield Inc. (USD) 6.75% 5/15/2028 144A (05/19/2020): 650MM Secured Notes, Price at Issuance 100, Yielding 6.75%. 3. Cushman & Wakefield Inc. (USD) 6.75% 5/15/2028 Reg S (05/19/2020): 650MM Secured Notes, Price at Issuance 100, Yielding 6.75%. 4. Talen Energy Supply LLC (USD) 7.625% 6/1/2028 144A (05/19/2020): 400MM Secured Notes, Price at Issuance 100, Yielding 7.63%. 5. Talen Energy Supply LLC (USD) 7.625% 6/1/2028 Reg S (05/19/2020): 400MM Secured Notes, Price at Issuance 100, Yielding 7.63%. 6. Park Intermediate Hldg LLC (USD) 7.5% 6/1/2025 Reg S (05/19/2020): 550MM Secured Notes, Price at Issuance 100, Yielding 7.5%. 7. Sanders RE II LTD (USD) FLT% 6/7/2026 (05/20/2020): 200MM Unsecured Notes, Price at Issuance 100. 8. Park Intermediate Hldg LLC (USD) 7.5% 6/1/2025 144A (05/20/2020): 550MM Secured Notes, Price at Issuance 100, Yielding 7.5%. |
1. Xperi Corp. : $1.1B seven-year secured covenant lite TLB
2. 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 3. Sedgwick Claimes Management Services Inc.: $300MM TL (B2/B) 4. RSA: $1.425B credit facilities: $75MM revolver; $1B TL; $350MM TL 5. Radio Systems Corp.: $725MM Loans: $100M ABL Facility; $625MM Senior secured bridge loan 6. Mohegan Tribal Gaming Authority: $100MM first lein TL (Caa1) 7. Logmein Inc.: $3.55B credit facilities: $250MM Revolver; $2.7B first lien TL; $600MM second-lien TL 8. Whole Earth Brands (ACT II GLOBAL ACQUISTION CORP.):: $235 MM credit facilities: $50MM reolver; $185MM term A 9. Championx: $537MM TL 10. Ziply Fiber: $790.5MM TLB |
Top Widening Loans | Top Narrowing Loans |
American Tire Distributors Inc. (USD) TL DIP PIK L+600 09/01/2023 LGC LTD (EUR) TLB4 E+325 03/08/2023 Rubix Group (EUR) TL E+800 09/08/2025 WIRB-Copernicus Group Inc (USD) TLB L+400 01/08/2027 Distributed Power Inc. (USD) TLB L+325 11/02/2025 |
Digital Realty Trust LP (USD) DD L+100 01/15/2023 Visteon Corp. (USD) TLB L+175 03/24/2024 Eaglepicher Inc. (USD) TL L+725 03/09/2026 Orion EngineeRed Carbons Hldgs GmbH (USD) TLB L+200 07/25/2024 Metro-Goldwyn-Mayer Inc. (USD) TL2 L+450 06/29/2026 |
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 26 bp (basis points), as of 05/20/2020
- Net negative capital flows into high-yield ETFs & mutual funds
INVESTMENT GRADE BOND RESEARCH
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May 20, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Boeing Co. 4.875% 5/1/2025 Boeing Co. 5.805% 5/1/2050 General Motors Co. 6.8% 10/1/2027 Walt Disney Co. 3.6% 1/13/2051 Boeing Co. 5.15% 5/1/2030 Boeing Co. 5.93% 5/1/2060 Comcast Corp. 3.75% 4/1/2040 Walt Disney Co. 2.65% 1/13/2031 General Electric Co. FLT% PERP (1) Pfizer Inc. 2.7% 5/28/2050 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | New Issues [Continued] |
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1. AT&T Inc. (EUR) 1.6% 5/19/2028 (05/19/2020): 1750MM Senior Unsecured Notes, Price at Issuance 99.926, Yielding 1.61%.
2. Kentucky Utilities Co. (USD) 3.3% 6/1/2050 (05/19/2020): 500MM Secured Notes, Price at Issuance 99.509, Yielding 3.33%. 3. National Fuel Gas Co. (USD) 5.5% 1/15/2026 (05/19/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.518, Yielding 5.6%. 4. AutoNation Inc. (USD) 4.75% 6/1/2030 (05/19/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.479, Yielding 4.82%. 5. Arizona Public Service (USD) 3.35% 5/15/2050 (05/19/2020): 600MM Senior Unsecured Notes, Price at Issuance 99.531, Yielding 3.37%. 6. AT&T Inc. (EUR) 2.05% 5/19/2032 (05/19/2020): 750MM Senior Unsecured Notes, Price at Issuance 99.801, Yielding 2.069%. 7. AT&T Inc. (EUR) 2.6% 5/19/2038 (05/19/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.944, Yielding 2.604%. 8. Cogent Communications Group Inc. (EUR) 4.375% 6/30/2024 (05/19/2020): 215MM Senior Unsecured Notes, Price at Issuance 99.5, Yielding 4.51%. 9. Kentucky Utilities Co. (USD) 3.3% 6/1/2050 (05/19/2020): 500MM Secured Notes, Price at Issuance 99.509, Yielding 3.33%. 10. JPMorgan Chase & Co. (USD) VAR% 6/1/2024 (05/19/2020): 2000MM Senior Unsecured Notes, Price at Issuance 100. |
Top Widening Loans | Top Narrowing Loans |
American Tire Distributors Inc. (USD) TL DIP PIK L+600 09/01/2023 LGC LTD (EUR) TLB4 E+325 03/08/2023 Rubix Group (EUR) TL E+800 09/08/2025 WIRB-Copernicus Group Inc (USD) TLB L+400 01/08/2027 Distributed Power Inc. (USD) TLB L+325 11/02/2025 |
Digital Realty Trust LP (USD) DD L+100 01/15/2023 Visteon Corp. (USD) TLB L+175 03/24/2024 Eaglepicher Inc. (USD) TL L+725 03/09/2026 Orion EngineeRed Carbons Hldgs GmbH (USD) TLB L+200 07/25/2024 Metro-Goldwyn-Mayer Inc. (USD) TL2 L+450 06/29/2026 |
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 26 bp (basis points), as of 05/20/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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