HIGH YIELD BOND RESEARCH
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September 18, 2020
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Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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Delta Airlines Inc. 2.6% 12/4/2020 General Motors Co. 5.2% 4/1/2045 Chubb INA Hldgs Inc. 1.375% 9/15/2030 Pacific Gas & Electric Co. 4.55% 7/1/2030 T-Mobile USA Inc. 3.875% 4/15/2030 144A Oasis Petroleum Inc. 6.875% 3/15/2022 (1) Crown Castle Intl Corp. 5.25% 1/15/2023 Ball Corp. 2.875% 8/15/2030 JBS Investments GmbH 5.75% 7/30/2028 Reg S L Brands Inc. 7.5% 6/15/2029 |
Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New Issues | Forward Calendar |
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1. Vivo Energy Investment (USD) 5.125% 9/24/2027 144A (09/17/2020): 350MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.13%.
2. Oppenheimer Hldgs Inc. (USD) 5.5% 10/1/2025 144A (09/17/2020): 125MM First Lien Notes, Price at Issuance 100, Yielding 5.5%. 3. Reynolds Group (USD) 4% 10/15/2027 144A (09/17/2020): 1000MM Secured Notes, Price at Issuance 100, Yielding 4%. 4. Michaels Stores Inc. (USD) 4.75% 10/1/2027 Reg S (09/17/2020): 375MM Secured Notes, Price at Issuance 100, Yielding 4.75%. 5. Alliance Data Systems Corp. (USD) 7% 1/15/2026 Reg S (09/17/2020): 500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 7%. 6. Alliance Data Systems Corp. (USD) 7% 1/15/2026 144A (09/17/2020): 500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 7%. 7. Methanex Corp. (USD) 5.125% 10/15/2027 (09/17/2020): 700MM Senior Unsecured Notes, Price at Issuance 100, Yielding 5.13%. 8. First Quantum Minerals LTD (USD) 6.875% 10/15/2027 144A (09/17/2020): 1500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 6.88%. 9. Michaels Stores Inc. (USD) 4.75% 10/1/2027 144A (09/17/2020): 375MM Secured Notes, Price at Issuance 100, Yielding 4.75%. 10. Reynolds Group (USD) 4% 10/15/2027 Reg S (09/17/2020): 1000MM Secured Notes, Price at Issuance 100, Yielding 4%. |
1. Omnitracs LLC: $355MM TLs: $160MM TL (B2/B-); $195MM TL (Caa2/CCC)
2. Vander-Bend Manufacturing Inc.: $197.5MM credit facilities: $20MM revolver; $177.5MM TLB 3. MAG Aerospace: $290.7MM TL (B3/B) 4. EFS Cogen Holdings LLC: $1.05B credit facilities: $100MM revolver (Ba2/BB-); $950MM TLB (Ba3/BB-) 5. ECI Software Solutions: $990MM TLs: $710MM TL (B2/B-); $280MM TL (Caa2/CCC) 6. Amwins Group Inc.: $100MM TLB (Ba3/B+) 7. Allegro Microsystems Inc.: $325MM TL 8. Michaels Cos Inc.: $1.62B TLB (B+) 9. Allegro Microsystems Inc.: $325MM TL 10. Amwins Group Inc.: $100MM TLB (Ba3/B+) |
Top Widening Loans | Top Narrowing Loans |
NCL Corp. LTD (USD) TLA L+150 01/02/2024 Wittur (EUR) TL E+850 09/19/2027 Archroma Global Services (USD) TLB2 L+425 07/11/2024 24 Hour Fitness Worldwide Inc. (USD) DIP DD L+1000 06/16/2021 Kirk Beauty Zero GmbH (EUR) RC E+375 12/26/2021 |
Distributed Power Inc. (USD) TLB L+325 11/02/2025 Samsonite IP Holdings SARL (USD) TLA L+150 04/19/2023 Aimbridge Hospitality LLC (USD) TLB L+375 02/01/2026 Stubhub (USD) TLB L+350 02/13/2027 Nets Hldgs AS (NOK) TLB1N L+400 02/06/2025 |
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 09/18/2020
- Net negative capital flows into high-yield ETFs & mutual funds