NCR prices $1.1 billion; forward calendar grows; Neiman Marcus in focus

By Abigail W. Adams

Portland, Me., March 22 – The domestic high-yield primary market saw one drive-by deal price during Monday’s session.

NCR Corp. priced a $1.1 billion issue of eight-year senior notes (B3/B+). The deal was upsized and came at the tight end of talk.

While only one deal cleared the market, several more joined the forward calendar.

Liberty Communications of Puerto Rico LLC, Oasis Midstream Partners, Teine Energy Ltd., and Solaris Midstream Holdings LLC all plan to price offerings over the course of the week.

Meanwhile, the secondary space was firm on Monday with the tone improved, sources said.

Neiman Marcus Group Inc.’s 7 1/8% senior secured first-lien notes due 2026 (Caa2/existing CCC+) were in focus with the notes continuing to gain after a strong break.

NCR drives by

NCR Corp. priced an upsized $1.1 billion, from $1 billion, of eight-year senior notes (B3/B+) at par to yield 5 1/8% in a Monday drive-by, according to a market source.

Pricing came at the tight end of talk for a yield of 5 1/8% to 5¼%; initial talk was for a yield in the low 5% area.

The notes priced late in the session and were not seen in trade.

The calendar

The forward calendar continued to grow with four deals totaling $2.07 billion slated to price over the course of the week.

Liberty Communications of Puerto Rico plans to price $820 million of 8.25-year senior secured notes (B1/B+) on Tuesday with initial price talk for a yield of 5¼% to 5½%, according to a market source.

The notes are non-callable for 3.25 years.

Oasis Midstream Partners started a roadshow for $450 million of eight-year senior notes (expected B3/B) with initial price talk for a yield in the high 6% area, according to a market source.

The notes are non-callable for three years.

The roadshow will run through Wednesday with pricing expected thereafter.

Teine Energy pplans to price $400 million of eight-year senior notes (B3/B+) on Tuesday with initial price talk for a yield of 7%, according to a market source.

The notes are non-callable for three years. Pricing is expected on Tuesday.

Solaris Midstream Holdings plans to price $400 million of five-year senior notes with initial talk for a yield of 8% to 8¼%, according to a market source.

The notes are non-callable for two years.

Pricing is expected late Wednesday or early Thursday.

Neiman Marcus gains

Neiman Marcus’ 7 1/8% senior secured first-lien notes due 2026 continued to gain in high-volume activity after a strong break.

The 7 1/8% senior notes traded in a range of 101¾ to 102½ during Monday’s session.

They were marked at 102 bid, 102½ offered at the market close, a source said.

There was about $80 million in reported volume.

The notes continued to gain after a strong break on Friday with the notes closing the previous session at 101½ bid, 101¾ offered.

Neiman Marcus Group priced an upsized $1.1 billion, from $1 billion, issue of the 7 1/8% notes at par on Friday.

Pricing came tighter than talk for a yield of 7¼% to 7½%.

The deal was heard to have played to $3.6 billion of demand.

Fund flows

High-yield exchange-traded and actively managed funds continued to see outflows on Friday, the latest session for which data was available.

ETFs saw outflows of $997 million during Friday’s session; actively managed funds saw outflows of $140 million, according to a market source.

The high-yield market has now seen outflows of $8.9 billion in the 2021.

Indexes gain

Indexes saw nominal gains on Monday.

The KDP High Yield Daily index rose 5 points to close the day at $68.91 with the yield now 4.29%.

The index posted a cumulative decline of 37 points the previous week.

The ICE BofAML US High Yield index popped back into positive territory on Monday after dropping into negative territory last Friday.

The index gained 30.2 bps with the year-to-date return now 0.261%.

The index posted a cumulative loss of 53.1 bps on the week.

The CDX High Yield 30 index gained 17 bps to close Monday at 108.72.

The index posted a weekly gain of 44 bps on the week last week.

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