Morning Commentary: Further guidance emerges on Blackboard junk notes; LPL, Wesco prep

By Cristal Cody

Tupelo, Miss., Oct. 31 – The high-yield primary market stayed fairly quiet at the start of Thursday’s session with no new bond deals announced but several being marketed.

Blackboard Inc. is in the near-term pipeline with $243 million of second-lien notes (Caa2/CCC) and a $500 million bank loan.

Price talk on the notes is in the low 10% original issue discount area, one source said.

Recent talk had the bonds coming with an 11%-handle yield.

Other deals being marketed include $400 million of senior notes due 2027 from LPL Financial Holdings Inc.

In addition, Wesco Aircraft Holdings, Inc. is offering $1,575,000,000 of high-yield notes that includes $1 billion of seven-year senior secured notes (B3/B) and $575 million of eight-year senior unsecured notes (Caa2/CCC+) in a roadshow set to continue through Friday.

Early guidance on the seven-year notes is in the high 7% area, while early guidance on the eight-year senior notes is in the 350 basis points area behind the secured notes.

Volume continues to remain light with earnings blackout periods in force. This week is the busiest week of the third-quarter reporting season with nearly 200 companies reporting results, a market source said.

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