NFP, Ryman price in U.S.; WIND sells €525 million; Uber contracts; Netflix improves

By Paul A. Harris and James McCandless

Portland, Ore., Oct. 3 – In the high-yield primary market on Thursday $450 million priced in two deals in the U.S. and one European issue cleared the calendar.

NFP Corp. came to market with a $250 million issue and Ryman Hospitality Properties Inc. drove by with a $200 million add-on.

Greek issuer WIND Hellas Telecommunications SA sold €525 million on the European front.

The high yield secondary saw most of its activity pegged on a trio of new issues.

New notes from Live Nation Entertainment, Inc., Alliant Holdings Intermediate, LLC and National CineMedia, LLC were free to trade on Thursday.

Meanwhile, Uber Technologies, Inc.’s issues contracted as the company expands its business among ever-present worries regarding its profitability.

Streaming giant Netflix, Inc.’s paper improved in the face of an analyst warning that the name may need to lower prices to stay competitive.

Thursday deals

Two issues cleared the dollar-denominated market on Thursday.

At the conclusion of its relatively brief roadshow NFP Corp. priced a $250 million issue of senior notes due July 15, 2025 (Caa2/CCC+) at par to yield 8%.

The yield printed at the wide end of the 7¾% to 8% yield talk. Initial talk was in the high 7% to 8% area.

And in a drive-by Ryman Hospitality Properties Inc. priced an upsized $200 million add-on to its 4¾% senior notes due Oct. 15, 2027 (existing ratings B1/BB-) at 101.25 to yield 4.509%.

The issue size was increased from $100 million.

The reoffer price came rich to price talk in the 101 area.

In the European primary market Greek telecom WIND Hellas Telecommunications SA priced an upsized €525 million issue of five-year senior secured notes (//B) at par to yield 4¼%.

The issue size was increased from €500 million.

The yield printed at the tight end of the 4¼% to 4½% yield talk, and tight to early guidance in the mid-4% area.

New notes trade

A trio of new notes were free to trade on Thursday, garnering a lion’s share of the volume, traders said.

Beverly Hills, Calif.-based events promoter Live Nation’s new 4¾% senior notes due 2027 pushed up to 102¼ bid after pricing at par on Wednesday.

About $78 million was on the tape by the close.

The deal priced at $950 million in a quick-to-market trade with the yield landing at the tight end of 4¾% to 5% yield talk.

Elsewhere, Eden Prairie, Minn.-based insurance broker Alliant’s new 6¾% senior notes due 2027 were seen closing at 101 bid.

The notes saw about $28 million trading.

The upsized $690 million issue came to market at par, increased from $575 million with a shift of proceeds from a concurrently withdrawn $115 million loan.

Centennial, Colo.-based cinema advertising company National CineMedia’s new 5 7/8% senior secured paper due 2028 rose to 102 bid after pricing at par.

About $28 million of the paper traded.

The deal came to market at $400 million.

Uber contracts

Meanwhile, Uber’s notes declined, market sources said.

The 8% senior notes due 2028 chipped off ¼ point to close at 99 bid.

About $18 million of the notes were spoken for by session’s end.

The San Francisco-based transportation name launched two expansions to its business on Thursday.

One offers airport helicopter taxis in New York City and another matches gig economy workers with jobs in their field.

The company has been under continual pressure over its profitability, with about a third of its value reduced since its initial public offering.

It is also facing consternation in the regulatory landscape, recently sparring with California over a new law that would guarantee benefits of full-time employees to contract workers.

Netflix improves

Streaming name Netflix’s issues improved, traders said.

The 5 3/8% senior notes due 2029 rose ¾ point to close at 104 bid.

Traders saw $17 million of the issues in play.

As the market anticipates the Los Gatos, Calif.-based entertainment company’s new round of earnings results, an analyst at Needham said in a note that the name would have to cut prices or risk losing a large number of subscribers as more competitors enter the sector.

Recently, chief executive officer Reed Hastings said that the industry is about to become more challenging as Disney and Apple move closer to launching their own streaming platforms.

$198 million of inflows

The dedicated high-yield bond funds saw $198 million of net inflows in the week to Wednesday's close, according to information posted on the internet late Thursday by Lipper US Fund Flows.

The weekly fund flows number came in positive despite sizable outflows from the high-yield ETFs in the last session of the reporting period, according to a market source.

On Wednesday, the ETFs sustained $796 million of daily outflows.

Actively managed high-yield funds saw $25 million of inflows on the day.

Indexes down

Three high-yield indexes were pushed lower on Thursday.

The KDP High Yield Daily index lost 16 basis points on Thursday, settling at 71.06 with the yield moving up to 5.53%.

The index dropped 19 bps on Wednesday, declined by 2 bps on Tuesday and fell 12 bps on Monday.

The ICE BofAML US High Yield index shaved off 9.7 bps with the year-to-date return now at 10.841%.

The index crashed 43 bps on Wednesday and lost 6.9 bps on Tuesday.

The CDX High Yield 30 index moved lower by 36.75 bps to 105.8946.

The index fell 36.67 bps on Wednesday, declined by 35.5 bps on Tuesday and added 34.99 bps on Monday.

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