Midday Commentary: Recent high-yield bond deals hold in as equities get hammered

By Paul A. Harris

Portland, Ore., Aug. 15 - Issues that priced on Wednesday appeared to be holding in, even as 10-year Treasuries were off three-quarters of a point and equities were "getting kicked in the teeth," a portfolio manager said during a mid-Thursday morning telephone call.

NuStar Logistics, LP's new 6¾% senior notes due Feb. 1, 2021 (Ba1/BB+/BB) were par ½ bid, 101¼ offered, the buysider said.

The $300 million bullet deal priced at par on Wednesday.

The new Access Midstream Partners, LP add-on to the 5 7/8% senior notes due April 15, 2021 (Ba3/BB/) were 102 bid, 102¼ offered.

The $400 million tap priced at 101.5 to yield 5.503% on Wednesday.

The primary market, meanwhile generated a paltry amount of news on Thursday morning.

ACI Worldwide, Inc. talked its $300 million offering of seven-year senior notes (B2/BB-) to yield 6¼% to 6½%.

The deal, which is set to price Thursday, appears to be coming together at the tight end of that price talk, the investor said.

Also this buyside source expects price talk to surface Thursday on the Shingle Springs Tribal Gaming Authority's $250 million offering of eight-year senior notes (B3/CCC+).

Initial guidance on that deal was 8¼% to 8½%, according to a market source.

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