CenturyLink, Credit Acceptance, GLF Environmental, EnerSys, Icahn Enterprises, Amsted Industries price

By Abigail W. Adams

Portland, Me., Dec. 9 – The domestic high-yield primary market was in full gear on Monday with six issuers pricing a cumulative $3.88 billion in seven tranches and the forward calendar growing.

Six of the seven deals to price during Monday’s session came as drive-bys; most came tight to talk; two upsized.

Opportunistic issuers were taking advantage of attractive market conditions before the year comes to a close, a market source said.

In drive-by action, Icahn Enterprises LP priced an upsized $750 million issue, CenturyLink, Inc. priced an upsized $1.25 billion issue, Amsted Industries Inc. priced a $400 million issue, GFL Environmental Inc. priced $775 million in two tranches, and Credit Acceptance Corp. priced a $400 million issue.

EnerSys Inc. also priced its $300 million offering of eight-year bullet notes.

However, two more issuers stepped forward to fill the void EnerSys left on the forward calendar.

Wyndham Destinations Inc. plans to price $300 million 10.5-year senior secured notes (Ba2/BB) on Tuesday.

And Korn Ferry began marketing a $400 million issue of eight-year senior notes (Ba3/BB) with pricing expected before the week comes to a close.

Drive-bys

The drive-by window was wide open on Monday with five issuers pricing a cumulative $3.58 billion in six tranches.

Icahn Enterprises priced an upsized $750 million issue of senior notes due May 15, 2027 (Ba3/BB+ expected) at par to yield 5.25%, according to a market source.

Pricing came on top of talk in the 5¼% area, which was also initial guidance.

The initial size of the deal was $500 million.

CenturyLink priced an upsized $1.25 billion issue of senior notes due Dec. 15, 2026 (B2/B+/BB) at par to yield 5.125%, according to market sources.

Pricing came tight to official price talk in the 5¼% area. Initial guidance was in the low to mid 5% area, according to a market source.

The initial size of the deal was $750 million.

Credit Acceptance Corp. priced $400 million issue of senior notes due Dec. 31, 2024 (Ba3/BB) at par to yield 5 1/8%, according to a market source.

The deal priced on top of official price talk for a yield of 5 1/8%, which was revised from earlier talk in the 5¼% to 5½% area. Initial guidance was in the 5¼% to 5½% area.

Amsted Industries priced $400 million of senior notes due May 15, 2030 (Ba3/BB expected) at par to yield 4 5/8%.

Pricing came tight to talk for a yield in the 4¾% area. Initial guidance was in the high 4% area, a source said, according to market sources.

GFL Environmental priced $775 million in two tranches.

The deal included a $500 million tranche of senior secured notes due Dec. 15, 2026 (B1/B+), which priced at par to yield 5 1/8%.

The tranche priced on the tight side of official talk in the 5¼% area. Early guidance was in the mid-5% area.

The deal also included a $275 million add-on to the 7% senior notes due June 1, 2026 (Caa2/CCC+), which priced at 101.143 to yield 6 5/8%.

Official talk was for a yield in the 6¾% area.

EnerSys prices tight

Outside of Monday’s drive-bys, EnerSys priced $300 million of eight-year senior bullet notes (expected ratings Ba3/BB+) at par to yield 4 3/8%.

Pricing came on the tight end of official price talk in the 4½% area, according to a market source.

Initial talk had the deal coming to yield in the 4½% to 4¾% area.

The forward calendar

The forward calendar also grew with two new deals in the market.

Korn Ferry plans to price $400 million in eight-year senior notes (Ba3/BB) in the coming week with early talk in the high 4% to 5% area, according to a market source.

BofA Securities Inc. is lead for the Rule 144A and Regulation S offering.

Wyndham Destinations plans to price $300 million 10.5-year senior secured notes (Ba2/BB) on Tuesday with initial talk for a yield in the 4¾% area, according to a market source.

J.P. Morgan Securities LLC is lead on the Rule 144A and Regulation S offering.

Indexes mixed

Indexes were mixed at the start of the week.

The KDP High Yield Daily index rose 10 points to 71.06 with the yield now 5.17%.

The index saw a cumulative gain of 6 bps on the week.

The ICE BofAML US High Yield index gained 9.7 bps with year-to-date returns now 12.626%.

The index saw cumulative gains of 46 bps on the week.

The CDX High Yield 30 index dropped 26 bps to close Monday at 107.54.

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