American Builders prices; junk bond calendar grows; Helios lags; Diamond Sports gains continue

By Paul A. Harris and Abigail W. Adams

Portland, Me., April 27 – Three drive-by issuers sold a total face amount of $1.2 billion during Tuesday's primary market session.

Two of the three deals upsized.

Executions were sharp, with all three issuers getting their deals done at the tight- or rich ends of talk.

There was also a modest buildup of the active forward calendar.

Meanwhile, it was another sideways day in the secondary space with volume light outside of new issues, a source said.

Helios Software Holdings, Inc.’s 4 5/8% senior secured notes due 2028 (B2/B) were active although the notes were at times lagging their issue price.

Diamond Sports Group LLC’s secured and unsecured notes continued their upward momentum on Tuesday following news the company was in talks with investors about reworking its debt load.

Helios Software lags

Helios Software’s 4 5/8% senior secured notes due 2028 were active on Tuesday with the notes at times lagging their issue price.

The 4 5/8% notes traded to a low of 99½ during Tuesday’s session. However, the notes were wrapped around par heading into the market close, a source said.

There was more than $33 million in reported volume.

Helios Software, and its parent, ION Corporate Solutions Finance Sarl, priced $350 million of the 4 5/8% notes at par on Monday.

The yield printed in the middle of the 4½% to 4¾% yield talk.

Diamond Sports momentum

Diamond Sports’ secured and unsecured notes continued their upward momentum in active trading on Tuesday.

The 6 5/8% senior notes due 2027 gained another 2½ points to close the day at 53½, according to a market source.

The notes remained active with $28 million in reported volume.

They were also up 2½ points on Monday.

Diamond Sports’ 5 3/8% senior secured notes due 2026 gained 1 point to close the day at 72¾.

They were up more than 1 point on Monday.

Diamond Sports’ struggling senior notes have been making large gains since Monday following reports that parent company Sinclair Broadcasting Group was in talks with investors and outside companies to find additional financing for its sports unit in exchange for enhancing credit protections, a source said.

In addition to exploring ways to rework its debt load, the company is working on two new marketing deals with sports betting companies.

$303 million Monday inflows

The dedicated high-yield bond funds had $303 million of net inflows on Monday, the most recent session for which data was available at press time, according to a market source.

High-yield ETFs had $358 million of inflows on the day.

Actively managed high-yield funds were negative on the day, however, sustaining $55 million of outflows on Tuesday, the source said.

The combined funds are tracking $840 million of net inflows on the week that will conclude with Wednesday's close, according to the market source.

Indexes mixed

Indexes were mixed on Tuesday with some posting nominal gains and others losses.

The KDP High Yield Daily index added 6 points to close Tuesday at 69.61 with the yield now 3.86%.

The index was up 1 point on Monday.

The CDX High Yield 30 index shaved off 3 bps to close Tuesday at 109.65. The index inched up 3 bps on Monday.

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