Primary prices $4.94 billion from seven issuers; Bally’s active; IEA struggles

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 9 – Seven drive-by issuers stormed the high-yield new issue market, raising a combined total of $4.94 billion, in a news-intensive Monday session.

Bombardier priced a $750 million issue of 6% 6.5-year senior notes.

NRG Energy, Inc. priced a $1.1 billion issue of 3¾% 10.5-year sustainability linked senior notes.

Meanwhile, it was a quiet day in the secondary space with volume light as market players awaited the torrent of deals in the pipeline.

While the market was soft early in the session, it picked up steam as the session progressed and was unchanged heading into the close, a source said.

Bally’s Corp.’s two tranches of senior notes (B3/CCC+/B) were trading at a premium to their discounted issue price in high-volume activity.

However, Infrastructure and Energy Alternatives Inc.’s 6 5/8% senior notes due 2029 (B3/B+/B) were lagging their issue price in the aftermarket.

Primary prices $4.94 billion

Executions were mixed. While one deal came inside of talk (M/I Homes, Inc.'s $300 million 3.95% senior bullet notes due February 2030) and one came at the tight end, two of Monday's deals priced at the wide ends of talk.

Bombardier priced a $750 million issue of 6% 6.5-year senior notes (Caa1/CCC+) at par, at the wide end of talk.

The debt refinancing deal was heard to be playing to $1 billion of orders that included a $250 million anchor order.

Meanwhile NRG Energy priced a $1.1 billion issue of 3¾% 10.5-year sustainability linked senior notes (Ba2/BB+) at par, also at the wide end of talk.

Monday also saw a sizable buildup of the active new issue calendar.

Bally’s at a premium

Bally’s two tranches of senior notes were trading at a premium to their discounted issue price in the aftermarket.

The 5 5/8% senior notes due 2029 were marked at 99¼ bid, 99¾ offered, a source said.

The 5 7/8% senior notes due 2031 were slightly lagging the shorter-duration notes and were seen at 99 5/8 offered in the late afternoon, according to a market source.

Bally’s priced a $750 million tranche of the 5 5/8% notes 99.202 to yield 5¾% and a $750 million tranche of the 5 7/8% notes due 2031 at 99.065 to yield 6% last Friday.

Both tranches priced at the wide end of talk with the deal downsized from $2 billion.

IEA struggles

Infrastructure and Energy Alternatives Inc.’s 6 5/8% senior notes due 2029 were struggling in the aftermarket.

The notes were bid as low as 99 3/8 during Monday’s session. However, they spent the majority of the day at 99½ bid, 99 7/8 offered.

The infrastructure construction company priced a $300 million issue of the 6 5/8% notes at par on Friday, according to market sources.

Indexes

The KDP High Yield Daily index dropped 4 basis points to close Monday at 70.03 with the yield 3.74%.

The index posted a cumulative loss of 18 bps on the week last week.

The CDX High Yield 30 index fell 19 bps to close Monday at 109.25.

The index gained 28 bps on the week last week.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.