North American Bond Research – November 17, 2020Posted on November 17, 2020
HIGH YIELD BOND RESEARCH
November 17, 2020
|Key Gainers and Losers||Volume Leaders|
|Pacific Gas & Electric Co. 4.55% 7/1/2030
Pacific Gas & Electric Co. 4.95% 7/1/2050
Federated Retail Hldg 6.375% 3/15/2037
Macy’s Retail Hldg Inc. 5.125% 1/15/2042
Nabors Industries Inc. 5.75% 2/1/2025
Crown Americas LLC 4.75% 2/1/2026
T-Mobile USA Inc. 6% 3/1/2023
Hilton Domestic Operating Co. 4.875% 1/15/2030
Ford Motor Credit Co. 3.81% 1/9/2024
General Motors Co. 4% 4/1/2025
|Industry Returns Tracker|
|New Issues||Forward Calendar|
|1. Hilton Domestic Operating Co. (USD) 4% 5/1/2031 Reg S (11/16/2020): 1100MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4%.
2. Hilton Domestic Operating Co. (USD) 3.75% 5/1/2029 Reg S (11/16/2020): 800MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.75%.
3. Rackspace Technology Global Inc. (USD) 5.375% 12/1/2028 Reg S (11/16/2020): 550MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.38%.
4. Meritor Inc. (USD) 4.5% 12/15/2028 144A (11/16/2020): 275MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.5%.
5. GFL Environmental Inc. (USD) 4% 8/1/2028 144A (11/16/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.171, Yielding 4.13%.
6. Hilton Domestic Operating Co. (USD) 4% 5/1/2031 144A (11/16/2020): 1100MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4%.
7. Hilton Domestic Operating Co. (USD) 3.75% 5/1/2029 144A (11/16/2020): 800MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.75%.
8. Rackspace Technology Global Inc. (USD) 5.375% 12/1/2028 144A (11/16/2020): 550MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.38%.
9. Meritor Inc. (USD) 4.5% 12/15/2028 Reg S (11/16/2020): 275MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.5%.
10. GFL Environmental Inc. (USD) 4% 8/1/2028 Reg S (11/16/2020): 500MM Senior Unsecured Notes, Price at Issuance 99.171, Yielding 4.13%.
|1. Amentum Holdings LLC: $980MM TL (B1/B)
2. Adtalem: $1.4B credit facilities: $400MM revolver; $1B TLB
3. Covis Group SARL: $485MM bank debt: $460MM secured TL; $25MM revolver
4. Mattress Firm: $550MM (B1/B+)
5. Symplr Software Inc.: $930MM TLs: $680MM TL, $250MM TL
6. American Public Education Inc.: $195MM credit facilities: $20MM revolver; $175MM TLB
7. Smyrna Rady: $515MM senior secured notes (B1/)
8. Tervita: $500MM senior secured notes (B3/CCC+)
9. Tenneco: $500MM senior secured notes (Ba3/B)
10. Aston Martin: $840MM senior secured notes (Caa2/CCC)
|Top Widening Loans||Top Narrowing Loans|
|Halcon Resources Corp. (USD) RC L+375 05/27/2021
Hurtigruten Group AS (EUR) TLC E+800 06/16/2023
Melissa & Doug LLC (USD) TL L+350 06/19/2024
Tritech Software Systems (USD) TL L+375 08/29/2025
ASP Chromaflo Intermediate Holdings Inc. (USD) TL L+800 11/18/2024
|Concordia International (EUR) TL E+525 09/06/2024
Imagina Media Audiovisual SL (EUR) TLB E+450 06/28/2025
Imagina Media Audiovisual SL (EUR) TLB2 L+450 06/22/2025
Imagina Media Audiovisual SL (USD) TLA2 E+400 06/22/2025
Worldwide Express (USD) TL L+400 02/03/2024
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 bps (basis points), as of 11/17/2020
- Net negative capital flows into high-yield ETFs & mutual funds
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