Junk: Navacord prices add-on; MoneyGram, VistaJet issues rise; funds lose $2.17 billion

By Paul A. Harris and Abigail W. Adams

Portland, Me., June 1 – Jones DesLauriers Insurance Management Inc., a broker partner of Navacord Inc., priced Thursday’s sole high-yield bond deal, an upsized $125 million fungible add-on to its 8½% senior secured notes due March 15, 2030 (B2/B-/B+) that came at 98.25 to yield 8.844% in a drive-by.

The tap increased from $75 million, and the price came in the middle of the 98 to 98.5 price talk.

Primary market activity drooped during the post-Memorial Day week. Although Memorial Day typically signals the start of summer in the bond market, and summers have been known to be slow in terms of new issue volume, a syndicate banker looks for summer 2023 to be a relatively active one in the primary market.

“A fair number of people are getting ready to go, so we should be active,” the source said.

Mobius Merger Sub, Inc.’s new 9% senior secured notes due 2030 (B2/B/B+) backing the buyout of MoneyGram International Inc. were trading at a strong premium to their deeply discounted issue price, one of several concessions made to help the struggling deal cross the finish line.

VistaJet Malta Finance plc’s senior notes (B3/B-) made large gains following earnings.

Meanwhile, junk mutual funds and ETFs returned to outflows with $2.17 billion leaving the space in the week through Wednesday’s close, according to the Refinitiv Lipper Fund Flow report.

© 2015 Prospect News.
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