Adient, Moss Creek, Entercom, Brookfield roadshow; GFL, Vizient come in slightly; Western Digital active

By Paul A. Harris and Abigail W. Adams

Portland, Me., April 22 – Dealers set the table for an active April 22 week, as four new roadshow deals rolled out on Monday.

Adient US LLC plans to run a Tuesday-Wednesday roadshow for a $750 million offering of seven-year senior secured notes (Ba2/BB-).

Brookfield Property REIT Inc. was scheduled to commence marketing for a $750 million offering of seven-year senior secured notes.

Moss Creek Resources Holdings, Inc. started a roadshow for a $500 million offering of eight-year senior notes (existing ratings B3/B+).

And Entercom Media Corp. started on Monday what figures to be a brief roadshow for a $300 million offering of eight-year senior secured second-lien notes (expected ratings B2/B-).

Meanwhile, new paper remained in focus in the secondary space with several of the recent issues coming in from their heights.

GFL Environmental Inc.’s 8½% senior notes due 2027 (Caa2/CCC+) were down slightly in active trading on Monday after soaring in the secondary space since pricing.

Vizient, Inc.’s 6¼% senior notes due 2027 (B3/existing B-) were also losing some ground while still trading at an enormous premium to their issue price.

Outside of the new paper, California Resources Corp.’s bellwether 8% senior notes due 2022 were making gains on a strong day for crude oil futures.

Adient roadshow

Dealers set the table for an active April 22 week, as four new roadshow deals rolled out on Monday.

BofA Merrill Lynch is leading three of the four.

Three of the four offerings feature secured notes.

And all four deals are in the market for the primary purpose of repaying bank debt.

Adient plans to run a Tuesday-Wednesday roadshow for a $750 million offering of seven-year senior secured notes (Ba2/BB-).

The deal, which is set to price at the conclusion of that roadshow, is in the market with low-to-mid 7% initial guidance.

BofA is the left bookrunner.

Brookfield Property REIT

Brookfield Property REIT was scheduled to commence marketing for a $750 million offering of seven-year senior secured notes on a late Monday morning conference call with investors.

The deal comes with initial guidance of 5 5/8% to 5 7/8% and is set to price on Friday.

Brookfield Property REIT is the only deal announced Monday that does not feature BofA on the left.

Morgan Stanley, Barclays, BofA, Citigroup, Deutsche Bank, HSBC, RBC, TD and Wells Fargo are the joint bookrunners.

Moss Creek unsecured deal

In the only unsecured deal announced Monday, Moss Creek Resources started a roadshow for a $500 million offering of eight-year senior notes (existing ratings B3/B+).

The whisper is 10%.

The roadshow wraps up on Friday.

BofA, BMO, Capital One, Citigroup and Wells Fargo are the joint bookrunners.

Brief roadshow for Entercom

Entercom Media started what figures to be a brief roadshow on Monday for a $300 million offering of eight-year senior secured second-lien notes (expected ratings B2/B-).

The roadshow wraps up Tuesday, and the deal, via left bookrunner BofA, is set to price thereafter.

Initial guidance has the notes coming to yield 6 7/8% to 7 1/8%.

The above deals join Truck Hero, Inc. which is in the market with a $335 million offering of seven-year first-lien senior secured notes which kicked off last Thursday.

The notes, via sole bookrunner Jefferies, come with initial guidance of 8% to 8 3/8%, and are expected to price by the end of the week.

Busier than last week

The April 22 week is expected to be substantially busier than the previous week, which saw the market close on Good Friday, ahead of the extended Easter holiday weekend.

Also, there was a recommended early market close on Thursday, heading into that holiday weekend.

The rest of April is expected to be active, with earnings blackouts – as companies report first quarter 2019 earnings ahead of any new issuance – being the major impeding factor in the run-up to the end of the month.

The market felt great, to start the week, one syndicate banker noted late Monday.

There should be more news on the new issue front as the week advances, the official advised.

As the aforementioned earnings reports wrap up, a substantial step-up in new issue activity is expected in May, sources say.

GFL down slightly

GFL Environmental’s 8½% senior notes due 2027 remained active in the secondary space with the notes coming in slightly after skyrocketing after pricing.

The 8½% notes were quoted at 101 7/8 bid, 102 3/8 offered on Monday.

They were down about 1/8 point to close the day at 102 1/8, sources said.

The notes skyrocketed after breaking for trade on April 17 gaining almost 2 points out of the gate.

GFL Environmental priced an upsized $600 million of the 8½% notes at par.

Vizient comes in

Vizient’s 6¼% senior notes due 2027 were also losing some steam on Monday. The notes remained active in the secondary space.

They were quoted at 102 bid, 102½ offered, according to a market source.

They traded down about 3/8 point to close the day at 102 1/8, sources said.

The notes from the Irving, Texas-based member-driven health care performance company also skyrocketed after breaking for trade on April 17.

The notes traded as high as 102½ on Thursday.

Vizient priced a $300 million issue of the 6¼% notes at par.

California Resources gains

California Resources’ 8% senior notes due 2022 were making gains on a strong day for crude oil futures on Monday.

The 8% notes were seen at 83 bid, 84 offered early in the session, according to a market source.

They rose about ¾ point to close the day at 83½.

Crude oil futures jumped on Monday after the U.S. announced it would end the waiver it had granted to certain countries for Iranian oil imports.

The barrel price of WTI crude oil for May delivery settled at $65.70, an increase of $1.70, or 2.66%, on Monday.

Mixed Thursday flows

The daily cash flows of the dedicated high-yield bond funds were mixed on Thursday, the most recent session for which data was available at press time, according to an investor.

High-yield ETFs sustained $70 million of outflows on the day.

Actively managed high-yield funds were essentially flat, on Thursday, with $5 million of inflows on the day, the investor said.

Indexes down

Indexes launched the week with losses after a mixed week last week.

The KDP High Yield Daily index slid 2 basis points to close Monday at 70.60 with the yield 5.7%.

The index saw a cumulative gain of 8 bps on the week last week.

The ICE BofAML US High Yield index slipped 0.6 bps with the year-to-date return now 8.547%.

The index was down 2.2 bps on the week last week.

The index shot past 8% year-to-date returns on April 8 after only recently surpassing the 7% threshold on March 26 and passing 6% year-to-date returns on March 11.

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