Credit Acceptance on tap; Digicel gains; recent deals active; Staples drops

By Abigail W. Adams

Portland, Me., March 4 – The March 4 week is expected to be an active one for the domestic high-yield primary market.

Credit Acceptance Corp. started a roadshow on Monday for a $400 million offering of seven-year notes (existing Ba3/BB) with pricing expected Wednesday

Johnson Controls, Inc. is expected to bring $4.8 billion equivalent of bonds during the March 4 week.

Frontier Communications Corp. and Digicel Group Ltd. may also surface with deals.

As whispers circulate about an upcoming deal from Digicel, the company’s outstanding bonds were on the rise in active trading in the secondary space.

New paper remained in focus in the secondary space although with little movement in price.

Bombardier Inc.’s 7 7/8% senior notes due 2027 (Caa1/B-) were active but flat on Monday after making large gains in their initial days in the secondary space.

Community Health Systems, Inc.’s 8% senior notes due 2026 (Caa1/B-/B) also saw high-volume activity although the notes continued to lag their new issue price.

CNX Resources Corp.’s newly priced 7¼% senior notes due 2027 (B3/BB-) were slow to trade in the secondary space but were also lagging their issue price.

Outside of the new paper, Staples, Inc.’s 8½% senior notes due 2025 dropped in active trading on Monday on news competitor Office Depot formed a strategic collaboration with Alibaba.com.

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