Altice France, ADT upsize; Ryman prices; Uber, CDW, Wynn trade; Extended Stay lower

By Cristal Cody and James McCandless

Tupelo, Miss., Sept. 13 – Friday the 13th proved lucky for several companies that tapped the high-yield primary market during the end-of-week session.

Altice France SA and ADT Inc. both upsized their deals in the session.

And, Ryman Hospitality Properties, Inc. and Core & Main Holdings LP priced.

The high-yield primary market has been busy over the week with more than $15 billion of dollar-denominated bonds priced.

In the secondary market, Uber Technologies, Inc.’s, CDW LLC’s and Wynn Resorts Finance LLC’s new notes all became free to trade on Friday.

Extended Stay America Inc.’s new paper declined.

Altice and ADT upsize

Altice France SA priced an upsized €2.55 billion equivalent dual currency offering of senior secured notes in three tranches.

The Rule 144A and Regulation S offering was upsized from an initial €1.5 billion two-tranche dual currency deal and from a €2.5 billion equivalent three-part deal.

The company sold €550 million of notes due Jan. 14, 2025 at par to yield 2½%, compared to talk in the 2¾% area.

Altice France priced €1 billion of notes due Jan. 15, 2028 at par to yield 3 3/8%. Guidance was in the 3½% area.

The $1.1 billion tranche of long eight-year dollar notes priced at par to yield 5½%, compared to talk in the 5 5/8% area.

ADT Inc. brought an upsized $600 million add-on to its 5¾% first priority senior secured bullet notes due April 15, 2026 on Friday. The notes priced on the tight side of initial guidance at 102.

Ryman and Core print

Additionally, in the Friday market, Ryman Hospitality Properties, Inc. sold $500 million of eight-year senior notes at par to yield 4¾%.

Initial price talk was in the high 4% area.

Core & Main Holdings LP also marketed $400 million of five-year PIK toggle notes. Guidance on the notes was at 8¾%.

The end of September

Although issuance has been steady month to date, junk bond volume is expected to slow.

“The current run-rate of HY issuance implies $28 [billion] total for September,” according to a BofA Merrill Lynch high-yield market report on Friday. “We think this pace is unlikely to be sustained, just like the IG market slowed down after the record week earlier. We expect the monthly total to be closer to $25 [billion] at this point.”

Coming up in the week ahead, Inmarsat plc is in the deal pipeline with $1,125,000,000 of senior secured notes due 2026.

Initial price talk is in the low-to-mid 6% area.

Advanced Drainage Systems, Inc. is gearing up to hold a roadshow starting Monday for up to $350 million of Rule 144A- and Regulation S-eligible eight-year senior notes.

Also, Installed Building Products, Inc. is expected to bring $300 million of senior notes due 2028 to the primary market in the week ahead. The notes were initially talked to price at the 6% to 6¼% area.

New issuance active

New junk carried the lion’s share of Friday’s secondary volume, traders said.

San Francisco-based consumer transportation name Uber’s 7½% senior notes due 2027 rose ½ point to close at 100½ bid.

Trading volume on the notes was $66 million.

The new issue came to market at an upsized $1.2 billion on Thursday in a Rule 144A for life and Regulation S offering.

Meanwhile, Lincolnshire, Ill.-based technology company CDW’s new upsized $600 million 4¼% senior notes due 2028 settled at 100¾ bid by the end of the session.

$53 million was on the tape by the close.

Subsidiaries of Las Vegas-based casino name Wynn Resorts, Ltd. brought a $750 million deal to market.

The 5 1/8% senior paper due 2029 ended the day at 100 1/8 bid.

Traders saw about $45 million change hands on Friday.

Extended Stay down

Elsewhere, Extended Stay’s recent issues were trailing, traders said.

The 4 5/8% senior notes due 2027 fell ½ point to close at 99½ bid.

The issues were trading weaker in volume to the tune of about $22 million.

The deal came to market Monday upsized to $750 million from an initial proposal for $500 million.

Mallinckrodt up

Pharma name Mallinckrodt plc’s paper was seen improving, market sources said.

The 5 5/8% senior paper due 2023 garnered 1¾ points to close at 37 bid. The 5¾% senior paper due 2022 added 2 points to close at 44 bid.

This week, the Staines-upon-Thames, England-based drug name announced that it would sell its contract drug manufacturing unit to a private equity firm for $250 million.

The company is currently considering a restructure as it faces a myriad of lawsuits related to its alleged role in the opioid epidemic.

A recent settlement with two Ohio counties resulted in a payout of $30 million.

Also this week, S&P Global Ratings and Moody’s Investors Service both issued downgrades to the company over its increased legal risk and its restricted access to liquidity.

Indexes trend lower

A majority of three high-yield indexes ended the week on a negative push.

The KDP High Yield Daily index dropped 11 basis points on Friday, ending the week at 71.80 with the yield at 5.38%.

The index lost 1 bps on Thursday, inched up 1 bps on Wednesday and moved up 9 bps on Tuesday.

The index gained an aggregate of 2 bps for the week.

The ICE BofAML US High Yield index fell 11.3 bps to close the week with the year-to-date return now at 11.597%.

The index ticked up 7 bps on Thursday, shed 2.8 bps on Wednesday and added 8.9 bps on Tuesday.

The CDX High Yield 30 index garnered 31.66 bps on Friday to 107.6604.

The index improved by 31.90 bps on Thursday, rose 32.20 bps on Wednesday and lost 32.57 bps on Tuesday.

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