Wynn Macau, Calpine, Wyndham Destinations, Enviva and Entercom add-ons price; GFL skyrockets

By Paul A. Harris and Abigail W. Adams

Portland, Me., Dec. 10 – In another busy session for the domestic high-yield primary market, three new deals and two add-ons priced a cumulative $2.75 billion on Tuesday.

In drive-by action, Calpine Corp. priced an upsized $1.25 billion issue of eight-year senior secured notes.

Entercom Communications Corp. price a $100 million add-on to the Entercom Media Corp. 6½% senior secured second-lien notes due May 1, 2027.

And Enviva Partners, LP and Enviva Partners Finance Corp. priced a $50 million add-on to their 6½% senior notes due Jan. 15, 2026 (B1/B+/BB-).

Two deals also cleared the forward calendar. Wynn Macau, Ltd. priced a $1 billion issue of 10-year senior notes (B1/BB-).

Wyndham Destinations Inc. priced an upsized $350 million issue of 10.5-year senior secured bullet notes (Ba2/BB-).

Meanwhile, new paper was in focus in the secondary space with several of the issues to price during Monday’s session putting in strong performances.

GFL Environmental Inc.’s 5 1/8% senior notes due 2026 (B1/B+) were the outperformers in the secondary space with the notes trading up to 4 points above issue.

CenturyLink, Inc.’s 5 1/8% senior notes due 2026 (B2/B+/BB) and Credit Acceptance Corp.’s 5 1/8% senior notes due 2024 (Ba3/BB) were trading 1 to 2 points above their issue price.

Amsted Industries Inc.’s 4 5/8% senior notes due 2030 (Ba3/BB) and Icahn Enterprises LP’s 5¼% senior notes due 2026 (Ba3/BB+) were also trading at a slight premium.

With double-B credits pricing with coupons on a 5-handle, the new paper was sought after in a market where 4 handles have become commonplace, sources said.

Calpine, Entercom, Enviva drive-by

A busy Tuesday session saw three issuers make stops at the high-yield drive-through window.

Calpine priced an upsized $1.25 billion issue of eight-year senior secured notes (expected ratings Ba2/BB) at par to yield 4½%.

The issue size increased from $750 million.

The yield printed in the middle of yield talk and initial talk, both of which were set in the 4½% area.

Entercom Communications priced a $100 million add-on to the Entercom Media Corp. 6½% senior secured second-lien notes due May 1, 2027 at 105.00 to yield 5.661%.

Enviva Partners priced a $50 million add-on to their 6½% senior notes due Jan. 15, 2026 (B1/B+/BB-) at 103.50.

The deal came at the rich end of the 103.25 to 103.5 price talk.

Big book for Wynn

In deals that were in the market overnight, Wynn Macau priced a $1 billion issue of 10-year senior notes (B1/BB-) at par to yield 5 1/8%.

The yield printed 12.5 basis points inside of yield talk in the 5 3/8% area.

The deal, which was announced at benchmark size and marketed to high-yield accounts as well as emerging markets investors, was said to be playing to $4 billion of orders, enabling the casino company to tighten pricing from initial guidance in the mid-5% area.

And Wyndham Destinations priced an upsized $350 million issue of 10.5-year senior secured bullet notes (Ba2/BB-) at par to yield 4 5/8%.

The issue size increased from $300 million.

The yield printed in the middle of the 4½% to 4¾% yield talk. Early guidance was in the 4¾% area.

The calendar

The active forward calendar contains three deals running roadshows and expected to price ahead of Friday's close.

Cox Media Group is marketing $1.165 billion senior notes due 2027 (Caa1/CCC+) with initial talk in the low 8% area.

Korn Ferry plans to sell $400 million eight-year senior notes (Ba3/BB) with early guidance in the high 4% area to 5%.

And AmWINS Group, Inc. is in the market with a $250 million add-on to its 7¾% senior notes due July 1, 2026 (existing ratings B3/B-), with early price talk of 103 to 104.

Following the Friday close, the pace of the primary market is likely to slow dramatically, market sources say.

GFL Environmental skyrockets

GFL Environmental’s newly priced 5 1/8% senior notes due 2026 skyrocketed in the aftermarket.

The new paper stood poised to close Tuesday at 103½ bid, 104 offered, a market source said. The notes saw a strong break after freeing for trade on Monday and quickly climbed to a 102 handle.

GFL Environmental’s add on to their 7% senior notes due 2026 (Caa2/CCC+) were also trading well above their reoffer issue price.

The 7% notes were seen at 102¾ bid, 103¼ offered.

GFL priced a $500 million tranche of the 5 1/8% notes at par and a $275 million tap of its 7% senior notes due 2026 at 101.143 in a Monday drive-by.

The 5 1/8% notes priced on the tight side of official talk in the 5¼% area. Early guidance was in the mid-5% area.

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

CenturyLink trades up

CenturyLink’s newly priced 5 1/8% senior notes due 2026 were trading at a large premium to their issue price.

The notes were wrapped around 101 in active trading. They stood poised to close the day at par ¾ bid, 101¼ offered, a market source said.

CenturyLink priced an upsized $1.25 billion issue of the 5 1/8% notes at par in a Monday drive-by.

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 eyed

Credit Acceptance’s newly priced 5 1/8% senior notes due 2026 were putting in a strong performance in the secondary space.

The notes were marked at 101½ bid, 102 offered in the late afternoon.

The deal was a smaller issue which helped drive demand, a source said.

The company also has a stellar business model, another source said.

The subprime auto lender tends to get overlooked.

However, Credit Acceptance “is one of the best run businesses I know,” a buyside source said.

People are starting to take note, the source said, with talk for Credit Acceptance’s offering tightening during bookbuilding.

Credit Acceptance priced a $400 million issue of the 5 1/8% notes at par in a Monday drive-by.

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 at a premium

Amsted Industries 4 5/8% senior notes due 2030 were trading at a healthy premium to their issue price on Tuesday, which some sources found surprising given its relatively low coupon.

The 4 5/8% notes were seen at par ½ bid, 101 offered on Tuesday.

The level was surprising with the notes pricing inside of 5%, “but they held in,” a source said.

Amsted Industries priced a $400 million issue of the 4 5/8% notes at par in Monday drive-by.

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

Icahn trades up slightly

Icahn’s 5¼% senior notes due 2027 were also trading at a slight premium during Tuesday’s session.

However, the notes’ performance was not as impressive as some of the other recent issues.

The 5¼% notes were marked at par ¼, par ¾ offered on Tuesday, a market source said.

Icahn priced an upsized $750 million issue of the 5 ¼% notes at par in a Monday drive-by.

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

The initial size of the deal was $500 million.

Indexes mixed

Indexes saw another mixed session on Tuesday, after a mixed start to the week.

The KDP High Yield Daily index rose 4 points to close Tuesday at 71.10 with the yield now 5.13%. The index rose 10 bps on Monday.

The ICE BofAML US High Yield index gained 13.9 bps with year-to-date returns now 12.765%. The index gained 9.7 bps on Monday.

The CDX High Yield 30 index slid 2 bps to close Tuesday at 107.52. The index dropped 26 bps on Monday.

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