Morning Commentary: Market tone improves in light Friday trading; Peugeot launches at 2 3/8%

By Paul A. Harris

Portland, Ore., April 8 – Junk bond prices were somewhat improved in light trading on Friday, trailing pronounced heaviness in the market on Thursday, sources said.

Market participants were preoccupied by the Masters Golf Tournament 2016, underway in Augusta, Ga., traders said.

Those unable to attend physically were tuned in electronically, a trader quipped.

High-yield ETF share prices were also better at mid-morning on the East Coast of the United States.

The iShares iBoxx $ High Yield Corporate Bd (HYG) was up 39 cents, or 0.48%, at $81.54 per share. SPDR Barclays High Yield Bond ETF (JNK), at $34.13 per share, was up 22 cents, or 0.63%.

Recent deals

Recent issues tended to be trading above reoffer prices on Friday, traders said.

The new Charter Communications, Inc. (CCO Holdings, LLC/CCO Holdings Capital Corp.)

5½% senior notes due May 1, 2026 (B1/BB-/BB-) were at 101 1/8 bid, 101 3/8 offered. The upsized $1.2 billion (from $1 billion) issue priced at par on Thursday.

Numericable-SFR SA’s new 7 3/8% senior secured notes due May 1, 2026 (B1/B+) were wrapped around 101, a trader said.

The massively upsized $5.19 billion (from $2.25 billion) issue – the biggest tranche of junk ever placed – priced at par on Wednesday.

The MGM Growth Properties Operating Partnership LP 5 5/8% senior notes due May 1, 2024 (B2/B+) were turning in a notable performance at 103¼ bid, 103½ offered on Friday morning, a trader said.

The $1.05 billion issue priced at par on Wednesday.

Peugeot, Quorum on deck

In the primary market, Quorum Health Corp. is on deck with a $400 million offering of seven-year senior notes (Caa1/CCC+).

The deal, which is being led by Credit Suisse, was talked on Thursday to yield in the 12% area including an original issue discount of approximately 1 point.

Books are scheduled to close at 1 p.m. ET on Friday.

Meanwhile in Europe, Peugeot SA launched a €500 million offering of seven-year senior notes (Ba2//BB) with a yield of 2 3/8%.

The deal, which will not grow in size, is set to price Friday.

BNP Paribas and HSBC are the global coordinators.

© 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.