Great Canadian Gaming, Golf Town/Golfsmith higher in trading; Baytex up 4½ points on week

By Cristal Cody

Prospect News, July 20 - Bonds ended Friday overall weaker while the Canadian markets saw a better bid on Friday after a week of heavier corporate and provincial issuance, informed sources said.

More Canadian dollar-denominated high-yield supply is expected before the summer is out, a syndicate source said.

"We think two or three deals before the end of September," the bond source said. "Could be a few more before the end of the year."

New paper from Great Canadian Gaming Corp. and Baytex Energy Corp. remained stronger in secondary trading on Friday.

"There's a better bid," a trader said.

Great Canadian Gaming's 6 5/8% senior notes due 2022 are up nearly 2 points in trading since the notes priced on Wednesday.

Baytex Energy's 6 5/8% debentures due 2022 traded unchanged on Friday but are up 4½ points on the week, a trader said.

The new 10½% senior second-lien notes due 2018 from Golf Town Canada Inc. and Golfsmith International Holdings, Inc. rose ½ point on the week.

Bonds overall ended the day weaker. The Markit CDX Series 18 North American investment-grade index eased 3 basis points to a spread of 111 bps on Friday.

The Markit CDX Series 18 North American high-yield index fell to 96.37 from 96.87.

Government bonds ended stronger with yields down across the curve. Canada's 10-year note yield dropped to 1.61% from 1.66%. The 30-year bond yield fell 4 bps to 2.24%.

Great Canadian Gaming rises

In the secondary market, Great Canadian Gaming's notes due July 25, 2022 rose to 101.5 bid, 102 offered on Friday, a trader said.

The company sold C$450 million of the 10-year notes (B1/BB+/) on Wednesday at par.

The Richmond, B.C.-based gaming, entertainment and hospitality company has operations in Canada and the United States.

Baytex unchanged on day

Baytex Energy's 6 5/8% debentures due 2022 traded flat on the day at 104 bid, 105 offered, a trader said.

The notes have steadily rallied in trading since the company sold C$300 million of the series C debentures (B1/BB-/) at par on July 10.

Calgary, Alta.-based Baytex is an energy exploration and production company.

Golf Town, Golfsmith higher

The 10½% senior second-lien notes due 2018 from Golf Town Canada and Golfsmith International traded at 101.5 bid on Friday, a trader said.

Golf Town Canada and Golfsmith International sold $125 million of the six-year notes (/B/DBRS B low) at par on July 13.

Markham, Ont.-based Golf Town plans to acquire Austin, Texas-based specialty golf retailer Golfsmith.

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