| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers W > Headlines for Wesco Distribution Inc. > News item |
Morning Commentary: Junk opens unchanged; new Wesco bonds trade to modest premiums
By Paul A. Harris
Portland, Ore., Feb. 27 – The high-yield bond market opened unchanged on Tuesday and remained there at mid-morning, according to traders in New York.
With the S&P 500 stock index down 0.05% at mid-morning, the iShares iBoxx $ High Yield Corporate Bd (HYG) share price was down a nickel, or 0.06%, at $77.05.
Bonds priced on Monday by Wesco Distribution, Inc. were trading at modest premiums to issue prices on Tuesday morning, a trader said.
The Wesco 6 3/8% senior notes due March 2029 and the 6 5/8% senior notes due March 2032 were both trading in a context of par 1/8 bid, par 3/8 offered, according to the source.
The upsized $1.75 billion deal (Ba3/BB/BB+) saw $900 million of the 2029 notes and $850 million of the 2032 notes price at par.
Both tranches were upsized from $750 million.
Wesco, which increased the size of its two-part deal from $1.5 billion, was one of two issuers to drive through on Monday with an offering the underwent a handsome upsize.
However, the new Builders FirstSource, Inc. 6 3/8% senior notes due March 2034 (Ba2/BB-), which also came on Monday, broke below issue price and remained there on Tuesday morning, the trader said, marking them 99 7/8 lock.
The $1 billion issue, upsized from $600 million, priced at par.
The dollar-denominated primary market sat idle on Tuesday morning, with just one deal on the active forward calendar.
Clear Channel Outdoor Holdings, Inc. is marketing an $865 million offering of six-year senior secured notes (B1/B) with initial guidance of 8¼% to 8½%.
The deal is expected remain in the market into the week ahead.
Apart from that, it’s “crickets,” the trader said.
A good deal of the market’s attention is directed toward the J.P. Morgan 2024 Global High Yield & Leveraged Finance Conference, underway through Wednesday in Miami, the source noted.
© 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.