TruckPro, Virgin deals announced; newer issues move higher; WeWork continues slide; Cheniere varies

By James McCandless and Paul A. Harris

San Antonio, Sept. 30 – Monday saw a prospective issuer emerge in the U.S. high-yield primary market and another in the European market, while newer issues were the focus of a muted secondary.

TruckPro LLC disclosed plans to market a $300 million offering of seven-year senior secured notes on a roadshow through Tuesday, Oct. 8.

In the European junk market, Virgin Media Secured Finance plc gave initial talk on a benchmark offering of sterling-denominated senior secured notes due 2030 (expected ratings Ba3/BB-/BB+) in the 4½% area.

Meanwhile, new notes priced by Calumet Specialty Products Partners, LP and Telesat Canada were pushed higher.

Elsewhere, WeWork Cos. Inc.’s issues extended a negative streak as the company officially shelved its initial public offering.

Oil and gas name Cheniere Energy Partners LP’s paper varied in direction as oil futures declined.

In telecom, Inmarsat plc’s recent notes improved.

Deals announced

In Tuesday's high-yield primary market TruckPro LLC disclosed plans to market a $300 million offering of seven-year senior secured notes on a roadshow through Tuesday, Oct. 8.

BofA is the left bookrunner for the deal backing the buyout of the distributor of aftermarket parts and accessories for heavy duty vehicles by Platinum Equity.

In the European junk market, Virgin Media Secured Finance plc gave initial talk on a benchmark offering of sterling-denominated senior secured notes due 2030 (expected ratings Ba3/BB-/BB+) in the 4½% area.

The deal, in the market to refinance $3.4 billion of bank debt, is set to price Tuesday via global coordinator and joint bookrunner Barclays (see related stories in this issue).

Friday inflows

The daily cash flows of the dedicated high-yield bond funds were positive on Friday, the most recent session for which data was available at press time, according to a market source.

High-yield ETFs saw $117 million of inflows on the day.

Actively managed high yield funds saw $25 million of inflows on Friday, the source said.

New notes higher

New notes priced on Friday cornered the high-yield secondary market, traders said.

Indianapolis-based fuel products name Calumet’s new 11% senior notes due 2025 moved up to 100½ bid.

The $550 million deal was priced with wholly owned subsidiary Calumet Finance Corp.

The deal priced at the top of talk for a yield of 10% to 11%.

Ottawa-based satellite telecommunications services provider Telesat’s new 6½% senior notes due 2027 rose to 102 bid.

It was also a $550 million deal that came to market on Friday.

The yield landed at the tight end of the 6½% to 6¾% yield talk.

WeWork negative

Elsewhere, WeWork’s issues extended a negative run, market sources said.

The 7 7/8% senior notes due 2025 dropped 2¼ points to close at 85 bid.

By the close, about $18 million of the issues had changed hands.

The notes were under pressure for the seventh straight trading day as the New York City-based coworking name announced that it had officially rescinded its IPO prospectus.

The IPO first came into doubt after potential investors questioned the company’s valuation.

After reducing the valuation, the company’s board and investors asked for the chief executive officer to resign.

“It looks like there’s no bottom for the paper right now,” a trader said.

Cheniere varies

In oil and gas, Cheniere’s paper varied in the backdrop to declining oil futures, traders said.

The 5 7/8% senior secured notes due 2025 shaved off ¼ point to close at 111¼ bid. The 4½% senior notes due 2029 held level at 102½ bid.

The Houston-based natural gas name’s structure was active after U.K. utility Centrica said that it would be buying liquefied natural gas from the company in a long-term contract.

Also, oil futures were under pressure after a Saudi oil executive said a previously damaged production facility has returned to full output.

West Texas Intermediate crude oil futures for November delivery lost $1.84 to settle the day at $54.07 per barrel.

North Sea Brent crude oil futures for November delivery slid to $60.78 per barrel after a $1.13 drop.

Inmarsat better

Telecom name Inmarsat’s notes ended on better footing, market sources said.

The 6¾% senior secured notes due 2026 picked up ¼ point to close at 102 bid.

About $19 million of the notes were on the tape.

The upsized $2,075,000,000 issue was priced last week and has seen steady improvements.

Indexes mixed

Two high-yield indexes saw mixed movements on Monday.

The KDP High Yield Daily index fell 12 basis points on Monday, settling at 71.43 with the yield rising to 5.44%.

The index dropped 10 bps on Friday, shaved off 1 bps on Thursday and lost 14 basis points on Wednesday.

The CDX High Yield 30 index added 34.99 bps to 106.7077.

The index shifted lower by 35.59 bps on Friday, lost 32.78 bps on Thursday and improved by 32.58 bps on Wednesday.

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