| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for Acadia Healthcare Co., Inc. > News item |
Morning Commentary: Junk opens slightly weaker; new Frontier bonds above issue prices
By Paul A. Harris
Portland, Ore., Sept. 14 – High-yield bonds were slightly weaker during the New York morning, according to a trader.
Volumes were light as the opening of the Rosh Hashana holiday thinned the ranks of market participants.
Shares of the high-yield exchange traded funds were slightly lower heading into the late morning.
iShares iBoxx $ High Yield Corporate Bd (HYG) was down a dime at $84.60.
SPDR Barclays High Yield Bond ETF (JNK) traded at $37.02, 2 cents lower.
Frontier above issue prices
Although crude oil prices were lower at mid-morning, and high-yield energy names were generally tracking them, the market’s focus was on Frontier Communications Corp.’s freshly minted senior bullet notes (Ba3/BB-), which came Friday in three tranches totaling $6.6 billion, the trader said.
The notes in all three tranches were trading at premiums to their new issue prices, although they had faded slightly – an eighth to a quarter of a point – from Monday’s opening levels, according to the source.
The Frontier 8 7/8% notes due Sept. 15, 2020 were 101¼ bid, 101¾ offered heading into the late morning. The notes priced at par in a tranche sized at $1 billion.
The 10½% notes due Sept. 15, 2022 were 101¾ bid, 102¼ offered. The notes priced at par in a tranche sized at $2 billion.
The long tranche, the 11% notes due Sept. 15, 2025, which played to the greatest demand on Friday, were 101½ bid, 102 offered heading into the late morning on Monday. The notes priced at par in a tranche sized at $3.6 billion.
Acadia to tap 5 5/8% notes
Primary market activity was muted.
There was a single deal announcement from Acadia Healthcare Co., Inc., which plans to price a $250 million add-on to its 5 5/8% senior notes due Feb. 15, 2023 on Monday.
The deal could be upsized to $400 million, a trader said.
Initial guidance had not widely circulated by press time; however, the existing 5 5/8% notes due 2023 were trading with a yield of about 5¼%, the source added (see related story in this issue).
© 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.