
North American Bond Research – May 6, 2020
Posted on May 6, 2020
HIGH YIELD BOND RESEARCH
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May 6, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Ford Motor Co. 8.5% 4/21/2023 Whiting Petroleum Corp. 6.25% 4/1/2023 144A Ford Motor Co. 9% 4/22/2025 General Motors Co. 5.2% 4/1/2045 General Motors Co. 6.25% 10/2/2043 Occidental Petroleum Corp. 2.7% 8/15/2022 Intelsat Jackson Hldg SA 5.5% 8/1/2023 (1) Occidental Petroleum Corp. 5.55% 3/15/2026 EQT Corp. 7% 2/1/2030 Gap Inc. 5.95% 4/12/2021 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. Avis Budget Finance PLC (USD) 10.5% 5/15/2025 144A (05/05/2020): 500MM Secured Notes, Price at Issuance 97, Yielding 11.3%.
2. Avis Budget Finance PLC (USD) 10.5% 5/15/2025 Reg S (05/05/2020): 500MM Secured Notes, Price at Issuance 97, Yielding 11.3%. 3. NCL Corp. LTD (USD) 12.25% 5/15/2024 144A (05/05/2020): 675MM Secured Notes, Price at Issuance 99, Yielding 12.57%. 4. Compass Group Diversified Holdings LLC (USD) 8% 5/1/2026 (05/05/2020): 200MM Senior Unsecured Notes, Price at Issuance 101, Yielding 7.79%. 5. NCL Corp. LTD (USD) 12.25% 5/15/2024 Reg S (05/05/2020): 675MM Secured Notes, Price at Issuance 99, Yielding 12.57%. 6. Wolverine World Wide Inc. (USD) 6.375% 5/15/2025 144A (05/06/2020): 300MM Senior Unsecured Notes, Price at Issuance 100, Yielding 6.38%. 7. Wolverine World Wide Inc. (USD) 6.375% 5/15/2025 Reg S (05/06/2020): 300MM Senior Unsecured Notes, Price at Issuance 100, Yielding 6.38%. |
1. BRP Inc.: $600MM TL B2 (B1)
2. Championx: $537MM TL 3. Xperi Corp. : $1.1B seven-year secured covenant lite TLB 4. Whole Earth Brands (ACT II GLOBAL ACQUISTION CORP.):: $235 MM credit facilities: $50MM reolver; $185MM term A 5. RSA: $1.425B credit facilities: $75MM revolver; $1B TL; $350MM TL 6. Logmein Inc.: $3.55B credit facilities: $250MM Revolver; $2.7B first lien TL; $600MM second-lien TL 7. 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 8. Conservice Midco LLc: $715MM credit facilities: $50MM revolver (B2/B); $475MM cove-lite TL (B2/B); $190MM TL 9. Whole Earth Brands (ACT II GLOBAL ACQUISTION CORP.):: $235 MM credit facilities: $50MM reolver; $185MM term A 10. RSA: $1.425B credit facilities: $75MM revolver; $1B TL; $350MM TL |
Top Widening Loans | Top Narrowing Loans |
Del Monte Foods Co. (USD) TL L+725 08/18/2021 Monitronics Intl. Inc. (USD) TL EXIT L+500 07/03/2024 Alliance Laundry Systems LLC (USD) TLA L+225 02/28/2024 CB Richard Ellis Services Inc. (USD) TLA L+100 03/04/2024 ABM Industries Inc. (USD) TLA L+225 09/01/2022 |
BI-Lo LLC (USD) TLB L+800 05/31/2024 Samsonite Intl. SA (USD) TLB L+175 04/19/2025 Hayward Ind Inc (USD) TLB L+350 08/04/2024 Hamilton Holdco LLC (USD) TLB L+200 01/02/2027 Wolverine World Wide Inc. (USD) TL L+125 12/06/2023 |
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 36 bp (basis points), as of 05/06/2020
- Net negative capital flows into high-yield ETFs & mutual funds
INVESTMENT GRADE BOND RESEARCH
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May 6, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Boeing Co. 5.15% 5/1/2030 Boeing Co. 5.805% 5/1/2050 Boeing Co. 5.93% 5/1/2060 Apple Inc. 2.65% 5/11/2050 Southwest Airlines Co. 1.25% 5/1/2025 Boeing Co. 4.875% 5/1/2025 Boeing Co. 4.508% 5/1/2023 Boeing Co. 5.04% 5/1/2027 General Electric Co. FLT% PERP (1) General Electric Co. 4.35% 5/1/2050 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | New Issues [Continued] |
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1. Clorox Co. (USD) 1.8% 5/15/2030 (05/05/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.109, Yielding 1.9%.
2. NextEra Energy Capital Holding Inc. (USD) 2.25% 6/1/2030 (05/05/2020): 2000MM Senior Unsecured Notes, Price at Issuance 99.963, Yielding 2.25%. 3. Ryder System Inc. (USD) 3.35% 9/1/2025 (05/05/2020): 400MM Senior Unsecured Notes, Price at Issuance 99.931, Yielding 3.36%. 4. Sabine Pass Liquefaction LLC (USD) 4.5% 5/15/2030 144A (05/05/2020): 2000MM Secured Notes, Price at Issuance 99.744, Yielding 4.53%. 5. Sabine Pass Liquefaction LLC (USD) 4.5% 5/15/2030 Reg S (05/05/2020): 2000MM Secured Notes, Price at Issuance 99.744, Yielding 4.53%. 6. Berkley W R Corp. (USD) 4% 5/12/2050 (05/05/2020): 300MM Senior Unsecured Notes, Price at Issuance 99.515, Yielding 4.03%. 7. EPCOR Utilities Inc. (CAD) 2.899% 5/19/2050 (05/05/2020): 300MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2.9%. 8. EPCOR Utilities Inc. (CAD) 1.299% 5/19/2023 (05/05/2020): 100MM Senior Unsecured Notes, Price at Issuance 100, Yielding 1.3%. 9. Barclays Bank PLC (USD) 1.7% 5/12/2022 (05/05/2020): 1750MM Senior Unsecured Notes, Price at Issuance 99.918, Yielding 1.74%. 10. Broadcom LTD (USD) 4.3% 11/15/2032 144A (05/05/2020): 2000MM Senior Unsecured Notes, Price at Issuance 99.874, Yielding 4.31%. |
Top Widening Loans | Top Narrowing Loans |
Del Monte Foods Co. (USD) TL L+725 08/18/2021 Monitronics Intl. Inc. (USD) TL EXIT L+500 07/03/2024 Alliance Laundry Systems LLC (USD) TLA L+225 02/28/2024 CB Richard Ellis Services Inc. (USD) TLA L+100 03/04/2024 ABM Industries Inc. (USD) TLA L+225 09/01/2022 |
BI-Lo LLC (USD) TLB L+800 05/31/2024 Samsonite Intl. SA (USD) TLB L+175 04/19/2025 Hayward Ind Inc (USD) TLB L+350 08/04/2024 Hamilton Holdco LLC (USD) TLB L+200 01/02/2027 Wolverine World Wide Inc. (USD) TL L+125 12/06/2023 |
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 36 bp (basis points), as of 05/06/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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