SS&C prices upsized deal; Greece, Puerto Rico weigh; CalRes falls again; coal up on EPA ruling

By Paul A. Harris and Stephanie N. Rotondo

Phoenix, June 29 – The secondary high-yield bond market was coming in with the broader markets on Monday as the stage was set for a Greek default.

Debt talks between the Mediterranean nation and the European Union fell apart over the weekend. Greek prime minister Alexis Tsipras called for a referendum vote on July 5, closed banks for the week and limited cash machine withdrawals as Tuesday’s deadline fast approaches.

One other big story of the day was Puerto Rico. Over the weekend, the U.S. territory’s governor, Alejandra Garcia Padilla, said the island is unable to repay debt to the tune of $72 billion. That news sent the territory’s benchmark bonds – the 8% notes due 2035 – down into the high-60s from the high-70s, a trader reported.

Of the day’s dealings, California Resources Corp.’s bonds “continued their slide,” according to a trader. The debt began to drift down on Friday, after a well-known short-seller deemed the company’s stock as worthless and said a debt restructuring was needed.

However, the coal sector was getting a boost after the Supreme Court ruled that the Environmental Protection Agency needed to take financial implications into account when handing down new emissions rules.

Amid volatility in the global financial markets, the high-yield primary market cleared a single deal on Monday.

SS&C Technologies Holdings Inc. priced an upsized $600 million issue of eight-year senior notes (B3/B+) at par to yield 5 7/8% on Monday, according to a syndicate source.

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