Morning Commentary: High-yield bonds open flat; RegionalCare Capella, Fresh Market on deck

By Paul A. Harris

Portland, Ore., April 22 – Junk bonds were trading flat to perhaps 1/8 of a point higher on Friday morning as Passover muted volume and thinned the ranks of market participants, a trader said.

Equities had turned negative heading into the New York mid-morning, the source noted.

The NBTY, Inc. 7 5/8% senior notes due May 15, 2021 (Caa1/CCC+) were par ½ bid, 101 offered.

The $1.075 billion issue priced at par on Thursday.

High-yield ETFs were also flat to slightly better. The iShares iBoxx $ High Yield Corporate Bd (HYG) was up 8 cents, or 0.10%, at $83.29 per share. SPDR Barclays High Yield Bond ETF (JNK), at $34.99 per share, was up 6 cents, or 0.16%.

The primary

In the primary market RegionalCare Capella Healthcare talked its $800 million offering of seven-year senior secured notes (B1/CCC+) to yield 8 1/8% to 8 3/8%.

Books close at 1:30 p.m. ET on Friday, and the deal, with lead left bookrunner Barclays in the driver’s seat, is set to price thereafter.

Also on deck is the Fresh Market with an $800 million offering of seven-year first-priority senior secured notes (Ba2/B), talked yesterday to yield 9½% to 9¾%.

Joint bookrunner Barclays will bill and deliver for the buyout deal.

And Trilogy International Partners LLC plans to price a $450 million offering of three-year senior secured notes (Caa1) on Monday.

Deutsche Bank has the books for the debt refinancing deal.

© 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.