Morning Commentary: Jarden bonds trade up after well-timed Wednesday deal; big weekly inflows eyed

By Paul A. Harris

Portland, Ore., Oct. 22 – While segments of the market remain under pressure – particularly the pharmaceutical sector – some names were higher Thursday morning, a sellside source said.

ETFs were flat heading into the mid-morning.

The iShares iBoxx $ High Yield Corporate Bd (HYG) was trading at $85.51 per share.

The SPDR Barclays High Yield Bond ETF (JNK) was $36.47 per share heading into mid-morning.

Both were up a penny.

The cash flows of the dedicated high-yield funds were strongly positive on Wednesday, the sellsider said.

High-yield ETFs saw $641 million of inflows on the day.

Asset managers saw $890 million of inflows on Wednesday.

The market is expecting $2.9 billion of aggregate inflows to the high-yield funds for the week to Wednesday's close, when Lipper-AMG releases its weekly fund flow numbers later Thursday.

Jarden timed right

The new Jarden Corp. 5% senior notes due November 2023 (Ba3/BB) were up half a point on Thursday at 101¾ bid, 101 7/8 offered, according to the sellside source.

“They time things right,” the source remarked, referring to the $300 million issue that priced at par on Wednesday, at the tight end of the 5% to 5¼% talk.

The Boca Raton, Fla.-based consumer products company had its sights set on a four-handle deal, but at the end of the day walked away with a 5% yield, the source remarked.

A portfolio manager, who noted that reverse inquiry played a significant part in the transaction, said that the buyside presently has an appetite for decent paper.

Meanwhile there is only one other dollar-denominated deal on the forward calendar.

American Energy – Permian Basin, LLC is in the market with a $560 million offering of five-year senior secured first-lien notes.

The deal, when announced, came on a schedule that had it pricing in the middle part of the present week and was being guided in the 9% area, sources say.

However the offer is now expected to be pushed into the week ahead, sources say. And pricing may take the yield into the double digits, a sellside source said on Thursday.

Verisure talk

Verisure Holding AB talked its €700 million offering of seven-year senior secured notes (B1/B) to yield 6% to 6¼% on Thursday.

The deal is set to price on Friday (see related story in this issue).

© 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.