CSC, Caliber, Univision add-on price; HUB on deck; MI Windows jumps; funds add $1 billion

By Paul A. Harris and Abigail W. Adams

Portland, Me., Jan. 18 – A big day in the primary market saw three single-tranche, dollar-denominated issuers price a $3.54 billion face amount of junk.

Two of the deals were drive-bys.

One upsized.

Executions bore the earmarks of a new issue market that is by no means cold: Two deals came tight to talk, while the third came in the middle of talk.

Altice USA subsidiary CSC Holdings, LLC priced an upsized $2.05 billion issue of five-year senior guaranteed notes (B2/B) at par to yield 11¾%, tight to talk, in a drive-by.

The issue increased from $1.25 billion, at which size it was three-times oversubscribed, a trader said.

The deal came in to the market on the back of a substantial amount of reverse inquiry, sources said.

Meantime, by all accounts first-time issuer Caliber Collision enjoyed a generous welcome to the junk primary market.

The Lewisville, Tex.-based collision repair company priced a $1.25 billion issue of Wand NewCo 3 Inc. eight-year senior secured notes (B3/B) at par to yield 7 5/8%, at the tight end of talk.

Strong demand for the paper enabled the first-time issuer to drive pricing dramatically lower from initial guidance in the 8% area, a price range at which the deal commanded a whopping $7.5 billion of interest among investors, sources said.

The yield ultimately printed at the tight end of final yield talk in the 7¾% area.

The bonds broke sharply higher in the secondary market on Thursday afternoon, where a trader had them at 101 5/8 bid, 102 1/8% offered.

And Univision Communications Inc. priced a $240.7 million add-on to its 8% senior secured notes due Aug. 15, 2028 (B1/B+) at 101 to yield 7.733% in a Thursday drive-by.

The notes broke into the secondary at 101½ bid, 102 offered, a trader said.

The issue price came in the middle of price talk in the 101 area. Initial guidance was 100.75 to 101, a trader said.

Looking to Friday’s session Hub International Ltd. is on deck with a $3 billion two-part offering that includes secured and unsecured high-yield notes.

The deal includes a $1.1 billion add-on to the Hub International 7¼% senior secured notes due June 15, 2030 (B2/B), talked in the 102 area, at the cheap end of initial price talk in the 102 to 102.5 area. It also includes a $1.9 billion tranche of new eight-year senior notes (Caa2/B-), which come with three years of call protection, talked to yield in the 7½% area.

On Thursday morning the deal was heard to be playing to $3.5 billion of demand across both tranches, with that demand slightly skewed to the unsecured notes, a trader said.

Secondary firms

Meanwhile, the secondary space firmed on Thursday with buyers returning to the space after a heavy week.

The cash bond market was up about a 1/8 point while the CDX index added ¼ point, a source said.

The secondary space remained active with new paper and topical news continuing to drive volume.

Global Auto Holdings Ltd.’s 8 3/8% senior notes due 2029 and 8¾% senior notes due 2032 (B2/B+) bounced back in heavy volume on Thursday after hitting a fresh low the previous session.

DirecTV Financing, LLC’s 8 7/8% senior secured notes due 2030 (Ba3/BB/BBB-) reclaimed a 101-handle with the notes returning to their previous heights after giving back some gains over the past three sessions.

CSC Holdings senior notes were on the rise in active trade with the company’s latest offering a boon to its capital structure.

MI Windows and Doors, LLC’s 5½% senior notes due 2030 (B3/B/BB-) were the major gainers of Thursday’s session after parent company MITER announced its acquisition of PGT Innovations Inc.

Meanwhile, high-yield mutual funds and exchange-traded funds continued to see inflows with $1 billion entering the space in the week through Wednesday’s close, according to a market source.

Global Auto bounces back

Global Auto’s recently priced 8 3/8% senior notes due 2029 and 8¾% senior notes due 2032 bounced back on Thursday after hitting fresh lows the previous session.

The 8 3/8% senior notes due 2029 gained 1½ points to close the day on a 97-handle.

They were trading in the 97¼ to 97¾ context heading into the market close, a source said.

The notes traded as low as 96 the previous session.

Global Auto’s 8¾% senior notes due 2032 added 1 point to also close the day on a 97-handle.

They traded as high as 97½ in intraday activity but settled into the 97 1/8 to 97 3/8 context by the close, a source said.

There was $32 million in reported volume.

Global Auto’s two-tranche offering has so far claimed the title of the worst performing deal of 2024 with the notes sinking underwater shortly after pricing.

In its debut junk bond offering, the automobile designer and manufacturer priced a $525 million tranche of the 8 3/8% notes and a $525 million tranche of the 8¾% notes at par on Jan. 11.

DirecTV reclaims heights

DirecTV’s recently priced 8 7/8% senior secured notes due 2030 reclaimed their heights in heavy volume on Thursday.

The notes rose ½ to ¾ point to close the day on a 101-handle.

They were trading in the 101¼ to 101½ context heading into the market close.

There was $29 million in reported volume.

The notes reclaimed the heights seen on the break after giving back some gains over the past two sessions.

In a heavily oversubscribed offering, DirecTV priced a $750 million issue of the 8 7/8% notes at par on Jan. 12, according to market sources.

CSC on the rise

CSC Holdings was on the rise in active trade on Thursday with the company’s latest offering a boon to its capital structure.

Altice USA subsidiary’s 5¾% senior notes due 2030 (Caa2/CCC+) added ½ point to close the day at 54¼ with the yield 18 7/8%, a source said.

There was $25 million in reported volume.

The 7½% senior notes due 2028 added 1½ points to close the day wrapped around 66 with the yield about 19¾%.

There was $22 million in reported volume.

CSC Holdings’ soon-to-mature 5¼% senior notes due June 1, 2024 were up as much as 2 points.

They were trading at 99¾ with the yield about 6%.

The market was fully expecting the notes to be covered upon their maturity, a source said.

CSC Holdings’ latest offering was a boon to its capital structure with the successful completion of the deal alleviating some of the refinancing risks associated with the debt-ridden company.

MI Windows gains

MI Windows’ 5½% senior notes due 2030 were the major gainers of Thursday’s session with the notes rising 5 to 6 points after parent company MITER announced its acquisition of PGT Innovations Inc.

The 5½% notes traded up to an 88-handle and closed the day in the 88½ to 88¾ context, a source said.

The yield was about 7 7/8%.

The notes logged strong gains after MITER announced it would acquire PGT in a $3.1 billion deal.

MITER successfully outbid Masonite International for PGT with PGT terminating its previous merger agreement with Masonite in favor of MITER’s offer.

Indexes

The KDP High Yield Daily index closed Thursday up 5 basis points at 50.41 with the yield now 6.94%.

The ICE BofAML US High Yield index added 7.5 bps with the year-to-date return now negative 0.713%.

The index was down fell 37.2 bps on Wednesday and 27.8 bps on Tuesday.

The CDX High Yield 30 index gained 22 bps to close Thursday at 105.61.

The index fell 22 bps on Wednesday and 32 bps on Tuesday.

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