goeasy spotted as lone dollar deal in Monday junk market; secondary tone marked as soft

By Paul A. Harris and Cristal Cody

Portland, Ore., Nov. 13 – goeasy Ltd. came Monday with a $550 million drive-by issue of five-year senior notes (Ba3/BB-), the only deal to cross the finish line in the junk bond market on the day.

It priced at par to yield 9¼%, in the middle of yield talk.

The primary market generated news away from that issue.

In a deal that the market has been watching for since late October Verde Purchaser, LLC unveiled a $600 million offering of senior secured notes due 2030 backing the buyout of Veritiv Corp. by Clayton, Dubilier & Rice LLC.

The notes are in the market with initial guidance in the 10½% area, and are expected to price later in the week.

The euro-denominated junk market also generated news on Monday, as dealers took the wrappers off a euro-denominated offer, a sterling-denominated offer, and an €800 million equivalent two-part unsecured deal – dollars and euros – from Germany-based ams-OSRAM AG.

New junk paper continued to dominate the secondary market Monday but issues were mixed over the session.

Market tone was mostly soft.

The iShares iBoxx High Yield Corporate Bond ETF fell 7 cents, or 0.09%, to $73.99.

OneMain Holdings, Inc.’s newly reopened 9% senior notes due Jan. 15, 2029 (Ba2/BB) gave back almost ½ point Monday.

The issue was among the most active junk bonds seen over the day with trading topping $32 million.

Bombardier Inc.’s 8¾% senior notes due 2030 (B2/B) climbed around ¾ point on $18.5 million of secondary action over the session.

OneMain bonds soften

OneMain’s newly reopened 9% senior notes due Jan. 15, 2029 (Ba2/BB) gave back almost ½ point Monday to head out at par 1/8, a source said.

The issue was among the most active junk bonds over the day with trading topping $32 million.

OneMain priced a $250 million add-on to the issue at 99.5 to yield 9.115% on Thursday.

The issue price came at the rich end of the 99.25 to 99.5 price talk.

The notes traded in the par ¾ to 101 range prior to the add-on pricing.

Bombardier moves up

Bombardier’s 8¾% senior notes due 2030 (B2/B) climbed around ¾ point to around par ½ on $18.5 million of activity Monday, a source said.

The company sold $750 million of the notes on Nov. 6 at par.

The yield printed in the middle of yield talk in the 8¾% area. Initial guidance was in the high-8% to 9% area.

The offering was upsized from $500 million with orders totaling more than $2 billion for the deal.

Fund flows

High-yield ETFs had $462 million of daily cash inflows on Friday, the most recent session for which data was available at press time, according to a market source.

Actively managed high-yield funds sustained $82 million of outflows on the day, the source said.

To recap, the combined funds had their fourth-largest inflow on record, $6.2 billion, in the week ending last Wednesday, Nov. 8.

That total included $4.9 billion of net inflows to the junk ETFs, the largest weekly inflow on record for that cohort, according to the market source.

Indexes

The KDP High Yield Daily index rose Monday to 48.67 with a yield of 7.87% after declining 5 basis points on Friday to 48.65 with the yield 7.89%.

The index posted a cumulative loss of 17 bps last week.

The CDX High Yield 30 index rose over 6 bps Monday to 102.595.

The index added 48 bps on Friday to 102.53.

© 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.