Delta upsizes; Kohl’s at a discount; Jeld-Wen drives by; Tronox flat; US Foods improves

By Paul A. Harris and Abigail W. Adams

Portland, Me., April 27 – While three deals that catered to high-yield accounts priced on Monday, only one was junk rated.

Jeld-Wen, Inc. priced a $250 million issue of five-year senior secured notes (Ba2/BB+) in a Monday drive-by.

A recent fallen angel, Delta Air Lines, Inc. priced a massively upsized $3.5 billion issue of five-year senior secured first-lien bullet notes (Baa2/BBB-), which carry investment grade ratings.

And Kohl's Corp. priced an upsized $600 million issue of 9½% five-year senior bullet notes (Baa2/BBB-/BBB-) at a discount.

Meanwhile, the high-yield secondary space was largely unchanged on Monday after closing out the previous week on soft footing.

New paper continued to dominate activity in the secondary space with mixed performances.

New paper from Kohl’s skyrocketed out of the gate while Delta’s new notes were hovering around par.

Tronox Inc.’s recently priced 6½% senior notes due 2025 (Ba3/B+) also fell flat in the aftermarket.

However, US Foods, Inc.’s 6¼% senior notes due 2025 (B3/BB) improved in active trading on Monday.

Outside of the new issues, market players were eyeing Avis Budget Group Inc. and Hertz Corp. with the junk bonds of both rental car companies taking a beating recently.

© 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.