New high-yield bonds eyed; Tesla trades active; Staples hits par; Trinseo performs well

By Stephanie N. Rotondo and Paul H. Harris

Seattle, Aug. 16 – The secondary high-yield bond market was “all new issue driven again,” a trader said Wednesday; the day’s sole deal was a $275 million add-on to Solera, LLC’s 10˝% senior notes due March 1, 2024.

The focus was centered on Tesla Inc.’s $1.8 billion of 5.3% senior notes due 2025, Staples Inc.’s $1 billion of 8˝% notes due 2025 and Trinseo’s $500 million of 5 3/8% notes due 2025.

The ClubCorp Holdings Inc./Constellation Merger Sub Inc. $425 million issue of 8˝% notes due 2025 also made an appearance.

But away from new issues, trading was a little more scattered, with little to no fresh news to cause any major swings or surges in activity.

In the healthcare space, Community Health Systems Inc.’s 8% notes due 2019 were on the busy side, but unchanged at 99, according to a trader.

Generic drug maker Endo International plc meantime saw its 6% notes due 2025 tick up over half a point to 81 3/8.

In the telecom sector, Frontier Communications Corp.’s bonds “continued to be sort of weak,” a trader said.

The trader pegged the 11% notes due 2025 with an 86 handle. He also said the 10˝% notes due 2022 “dipped below 90,” hitting levels around 89˝.

As for Windstream Corp., its 7˝% notes due 2023 rose 1˝ points to 79.

In the energy arena, Transocean Ltd.’s 9% notes due 2023 remained firm, rising nearly a point to 105˝.

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