TriNet prices; Hudbay Minerals outperforms; GoDaddy flat; Coeur Mining lags

By Paul A. Harris and Abigail W. Adams

Portland, Ore., Feb. 23 – Against the backdrop of a roller-coaster session in the stock market one high-yield deal crossed the finish line, albeit at the wide end of talk.

TriNet Group, Inc. priced a $500 million issue of 3½% eight-year senior notes (Ba2/BB) at par. Talk was in the 3 3/8% area.

Meanwhile, it was a volatile day in the secondary space with the cash bond market opening the day down 1/8 to ¼ point but closing the day largely unchanged, sources said.

While macro events were in focus on Tuesday, new paper continued to dominate the tape.

Hudbay Minerals Inc.’s 4½% senior notes due 2026 (B3/B/B+) outperformed with the notes trading almost 2 points above their issue price.

However, GoDaddy Inc.’s 3½% senior notes due 2029 (Ba3/BB-) remained wrapped around their issue price.

Coeur Mining, Inc.’s 5 1/8% senior notes due 2029 (B3/B) struggled in the aftermarket with the notes sinking below par in active trading.

Primary market

Volatility was considerable on Tuesday morning, as investors fretted the phenomenal rise in Treasury rates seen thus far in 2021, measuring the inflationary portents of that move, a trader said.

However, Jerome Powell, chair of the Federal Reserve, poured oil upon the waters when he remarked that inflationary pressure remains muted, while making assurances that the Fed will stay on hand to continue its assistance to the pandemic-hobbled U.S. economy, as the situation merits, the trader said.

On the heels of Powell's remarks sentiment improved, the source added.

In the high-yield primary market there was a buildup in the active forward calendar.

TTM Technologies, Inc. expects to price a $500 million offering of eight-year senior notes (Ba3/BB-/BB) on Wednesday. Initial talk has the deal coming to yield in the low 4% area.

And with one foot, each, planted in the high-yield and emerging markets, Dallas-based Kosmos Energy Ltd. mandated BofA, ING and Standard Chartered Bank to arrange calls with fixed income investors. The company intends to sell $400 million of seven-year senior notes, subject to market conditions (see related stories in this issue).

Meanwhile, the order book is growing for Australia-based miner Thiess Group Holdings Pty Ltd.'s $1.3 billion two-part secured bullet deal, set to price later this week, a trader said.

Thiess is thus far playing to $664 million of demand across 30 accounts, according to the source.

The deal is set to include seven-year notes with early guidance in the 5% area, and eight-year notes with initial guidance in the 5 1/8% area, sources say.

Hudbay outperforms

Hudbay Minerals’ 4½% senior notes due 2026 were putting in a strong performance in the aftermarket.

The notes were changing hands in the 101¾ to 102 1/8 context throughout the day, despite the weakness in the broader market early in the session, a source said.

There was more than $40 million in reported volume.

Hudbay priced a $600 million issue of the 4½% notes at par on Monday.

Pricing came at the tight end of the 4½% to 4¾% yield talk.

GoDaddy flat

GoDaddy’s 3½% senior notes due 2029 fell flat in the aftermarket with the notes largely wrapped around par since breaking for trade the previous session.

The notes were changing hands in the 99 7/8 to par 1/8 context throughout the session, a source said.

However, the notes gained some traction and traded as high as par ¼ in the late afternoon.

The notes had more than $38.5 million in reported volume heading into the market close.

GoDaddy priced an $800 million issue of the 3½% notes at par on Monday.

The yield printed in the middle of yield talk in the 3½% area.

Coeur lags

Coeur Mining’s 5 1/8% senior notes due 2029 saw a lackluster reception in the secondary space with the notes lagging their issue price.

The 5 1/8% notes were marked at 99 bid, 99 3/8 offered in the late afternoon, a source said.

While the issue was small, the notes were active with more than $40 million on the tape heading into the market close.

The notes were wrapped around par after breaking for trade on Monday.

Coeur Mining priced an upsized $375 million, from $350 million, issue of the 5 1/8% notes on Monday.

$238 million Monday inflows

The dedicated high-yield bond funds had $238 million of net inflows on Monday, the most recent session for which data was available at press time, according to a market source.

High-yield ETFs saw $218 million of inflows on the day.

Actively managed funds saw $20 million of inflows on Monday, the source said.

The combined funds are tracking $503 million of net outflows for the week that will conclude with Wednesday's close, according to the market source.

Indexes

The KDP High Yield Daily index fell 8 points to close Tuesday at 69.78 with the yield now 3.85%.

The index was down 2 points on Monday.

The ICE BofAML US High Yield index was down 6.6 bps with the year-to-date return now 1.184%.

The index dropped 8.7 bps on Monday.

The CDX High Yield 30 index gained 26 bps to close the day at 108.86. The index dropped 40 bps on Monday.

© 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.