Morning Commentary: Warrior Met Coal secured notes on deck; Nabors trades on 101-handle

By Abigail W. Adams

Portland, Me., Nov. 19 – The domestic high-yield bond primary market continued to slow its active pace with one reported deal on deck for Friday.

Warrior Met Coal, Inc. plans price $350 million of seven-year senior secured notes with initial price talk in the low 8% area, a market source said.

Meanwhile, the secondary space was slightly soft on Friday although volume remained light outside of new deals.

Nabors Industries, Inc.’s new 7 3/8% senior priority guaranteed notes due 2027 (B3/B-/B) were in focus with the notes putting in a strong performance.

Nabors sold $700 million of the notes on Thursday at par.

In the secondary market, the 7 3/8% notes were changing hands in the 101¼ to 101¾ context early in the session.

HUB International Ltd.’s new 5 5/8% senior notes due 2029 (Caa2/CCC+) were trading with a slight premium.

The notes were marked at par ¼ bid, par ¾ offered, a source said.

HUB priced $550 million of the notes at par on Thursday.

Meanwhile, fund flows were negative on Thursday, the most recent session the information was available.

High-yield mutual funds saw outflows of $215 million while actively managed funds saw outflows of $65 million.

The outflows came on the heels of the Refinitiv Lipper Fund Flow Report, which reported inflows of $99 million to high-yield mutual and exchange-traded funds through Wednesday’s close.

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