Morning Commentary: Junk ETFs see $1.02 billion Friday outflow; revised Jones Energy deal on deck

By Paul A. Harris

Portland, Ore., Feb. 12 – High-yield ETFs sustained daily cash outflows of $1.02 billion on Friday, according to a bond trader, who characterized it as one of the biggest daily outflows on record.

The junk ETFs were aggressive sellers on Friday, the source added.

Actively managed high-yield funds were also negative on Friday, sustaining $370 million of outflows on the day.

Meanwhile junk was modestly in the green on Monday, although the volatility that has lately rocked the high-yield and other global capital markets felt near at hand, the trader said.

The SPDR Blmbg Barclays High Yield Bd ETF (JNK) was up a dime, or 0.28%, at mid-morning, with a share price of $35.78.

Among Friday's deals, the Flexi-Van Leasing, Inc. 10% second-lien senior secured notes due 2023 (Caa1/B-) were turning in a banner secondary market performance on Monday at 99½ bid, 5 points better than issue price.

The notes priced at 94.417 in a $300 million issue on Friday.

Meanwhile the new Apex Group, LLC/BC Mountain Finance, Inc. 9% senior notes due 2023 (Caa1/B-) were unchanged at par bid Monday morning.

The $325 million issue came at par on Friday.

Revised Jones on deck

The new issue market remained quiet as the Feb. 12 week got underway.

There was news on the only dollar-denominated deal known to be in the market.

Jones Energy Holdings, LLC and Jones Energy Finance Corp. revised the price talk on their $450 million offering of senior secured first-lien notes due March 15, 2023 (B2) and brought document changes.

New talk has the deal coming with an all-in-yield of 9¾% to 10%, including about 2 points of original issue discount. Previous talk set out a 9½% coupon at approximately 2 points of discount.

There are also changes in the offering document that primarily bear upon collateral.

Books close at 2 p.m. ET on Monday, and the deal, via bookrunner Credit Suisse Securities (USA) LLC, is set to price thereafter.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.