Morning Commentary: Quiet activity seen in new high-yield issues from M/I Homes, Equinix, LifePoint

By Paul Deckelman

New York, Nov. 24 – The high-yield secondary market was fairly quiet on Tuesday morning, participants said.

They saw only light trading in some of the new issues that have priced over the past several sessions.

A trader said that M/I Homes Inc.’s new 6¾% notes due in January 2021 were in a 100 3/8 to 100 5/8 bid context.

A second trader quoted the Columbus, Ohio-based single-family homebuilder’s bonds at 100 3/8 bid, unchanged from late Monday, though with only a couple of round-lot trades.

M/I homes priced $300 million of the notes at par in a quick-to-market transaction on Monday.

One of the traders only saw scant morning activity in some of the other new deals as well, although at slightly firmer levels.

He said that Equinix, Inc.’s 5 7/8% notes due 2025 were up 1/8 point at 101¼ point, though again, only on a couple of trades.

The Redwood City, Calif.-based interconnection and data center provider priced $1.1 billion of the notes at par in a quickly shopped deal on Thursday that was upsized from an originally announced $1 billion.

And he said that LifePoint Health, Inc.’s 5 7/8% notes due 2023 gained 3/8 point from Monday’s close, moving up to 100½ bid on volume of about $3 million.

The Brentwood, Tenn.-based health care services provider priced $500 million of the notes at par on Thursday after the unscheduled transaction was upsized from an originally announced $300 million.

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