Morning Commentary: Playtech prices at talk; Resideo up in active trading; W&T on deck

By Paul A. Harris

Portland, Ore., Oct. 5 – With stock prices sagging, high-yield bonds were flat and basically unchanged Friday morning heading into the extended holiday weekend, a New York-based bond trader said.

High-yield ETFs were lower at mid-morning. The iShares iBoxx $ High Yield Corporate Bd (HYG) was off 0.15%, or 14 cents, at $85.54 per share.

In the junk secondary market, newly priced Resideo Funding Inc. 6 1/8% senior notes due Nov. 1, 2026 (B1/BB+) were up in active trading at par 1/8 bid, par 5/8 offered, according to the trader.

The $400 million issue, related to Honeywell International Inc.'s spinoff of the Honeywell Home business, priced at par, at the tight end of talk, on Thursday.

The new Cable & Wireless Communications Ltd. 7½% senior notes due October 2026 (B2/BB-/BB-) were up 1 point to 1.5 points in thin trading on Friday, the source said, adding that late Thursday those bonds were 101 bid, 101½ offered.

The $500 million issue priced at par on Thursday, at the tight end of talk.

Meanwhile, the recently minted Envision Healthcare Corp. bonds continued to drop in the secondary market.

The trader marked the Envision 8¾% senior notes due October 2026 (Caa1/B-) at 97¾ bid, 98¼ offered on Friday morning, down a touch on the day.

The $1,225,000,000 issue priced at par on Sept. 28.

The Envision LBO financing also included $5.45 billion of term loan paper, which attracted substantial play among high-yield bond accounts, sources say, adding that the loan paper has also been underperforming in the secondary market.

Playtech prices

In a generally quiet primary market Playtech plc priced a €530 million issue of five-year senior secured notes (expected ratings Ba2/BB) at par to yield 3¾% on Friday.

The yield printed in the middle of yield talk in the 3¾% area.

Only one deal is on deck in the dollar-denominated primary market. W&T Offshore, Inc. has been marketing a $625 million offering of five-year second-lien notes (B3/B).

The deal, which is expected to price on Friday, is in the market with initial price talk in the 10% area, sources say.

However there have been no recent updates on W&T Offshore.

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