HIGH YIELD BOND RESEARCH
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September 17, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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General Motors Co. 5.2% 4/1/2045 Delta Airlines 7.375% 1/15/2026 Oasis Petroleum Inc. 6.875% 3/15/2022 (1) Ford Motor Co. 4.75% 1/15/2043 CBL & Associates LP 4.6% 10/15/2024 Occidental Petroleum Corp. 3.5% 8/15/2029 Southwestern Energy Co. 7.5% 4/1/2026 Latam Finance Limited 6.875% 4/11/2024 Reg S Sprint Nextel Corp. 7.875% 9/15/2023 Embraer Netherlands B.V. 5.05% 6/15/2025 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. L Brands Inc. (USD) 6.625% 10/1/2030 144A (09/16/2020): 1000MM Senior Unsecured Notes, Price at Issuance 100, Yielding 6.63%.
2. Energizer Hldg Inc. (USD) 4.375% 3/31/2029 144A (09/16/2020): 800MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.38%. 3. Energizer Hldg Inc. (USD) 4.375% 3/31/2029 Reg S (09/16/2020): 800MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.38%. 4. L Brands Inc. (USD) 6.625% 10/1/2030 Reg S (09/16/2020): 1000MM Senior Unsecured Notes, Price at Issuance 100, Yielding 6.63%. 5. KBR Inc. (USD) 4.75% 9/30/2028 144A (09/16/2020): 250MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.75%. 6. KBR Inc. (USD) 4.75% 9/30/2028 Reg S (09/16/2020): 250MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.75%. 7. NEW Red Finance, Inc. (USD) 4% 10/15/2030 144A (09/16/2020): 1400MM Second Lien Notes, Price at Issuance 100, Yielding 4%. 8. NEW Red Finance, Inc. (USD) 4% 10/15/2030 Reg S (09/16/2020): 1400MM Second Lien Notes, Price at Issuance 100, Yielding 4%. 9. NFP Corp. (USD) 6.875% 8/15/2028 (09/16/2020): 225MM Senior Unsecured Notes, Price at Issuance 104, Yielding 6.23%. |
1. Michaels Cos Inc.: $1.62B TLB (B+)
2. Omnitracs LLC: $355MM TLs: $160MM TL (B2/B-); $195MM TL (Caa2/CCC) 3. Vander-Bend Manufacturing Inc.: $197.5MM credit facilities: $20MM revolver; $177.5MM TLB 4. Allegro Microsystems Inc.: $325MM TL 5. MAG Aerospace: $290.7MM TL (B3/B) 6. CJ Foods Inc.: $285MM TLB 7. ECI Software Solutions: $990MM TLs: $710MM TL (B2/B-); $280MM TL (Caa2/CCC) 8. EFS Cogen Holdings LLC: $1.05B credit facilities: $100MM revolver (Ba2/BB-); $950MM TLB (Ba3/BB-) 9. Amwins Group Inc.: $100MM TLB (Ba3/B+) 10. Michael Cos Inc.: $1.62B TLB (B+) |
Top Widening Loans | Top Narrowing Loans |
NCL Corp. LTD (USD) TLA L+150 01/02/2024 Aimbridge Hospitality LLC (USD) TLB L+375 02/01/2026 CPM Holdings Inc. (USD) TL2 L+825 11/16/2026 Autokiniton US Hldg, Inc. (USD) TLB L+575 05/22/2025 Cast & Crew Payroll LLC (USD) TLB L+375 02/07/2026 |
Samsonite IP Holdings SARL (USD) TLA L+150 04/19/2023 SSH Group Hldg Inc. (USD) TL2 L+825 07/30/2026 Acetow (USD) TLB L+550 04/21/2023 Tacala LLC (USD) TLB L+350 02/05/2027 United PF Holdings LLC (USD) TL L+400 01/06/2027 |
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 09/17/2020
- Net negative capital flows into high-yield ETFs & mutual funds