Primary high-yield market
Issuance was jump-started in the week's initial session as deals were moving swiftly through the pipeline to clear ahead of Thursday's bond market holiday. A total of seven tranches were on tap to print by today's close for a combined $4.9 billion. That total would push the year-to-date volume to $435.8 billion, hitting a new high mark for annual issuance, according to LCD. The current volume record is $435 billion in 2020.
Today's tally is set to be boosted by Ford Motor Co.'s expected inaugural dollar-denominated senior unsecured green notes offering. The 10-year paper — initially whispered in the 3.625% area — launched as a $2.5 billion tranche at 3.25%. Proceeds are expected to exclusively support clean transportation projects, specifically the design, development and manufacture of Ford's battery electric vehicle portfolio. Issue ratings are BB+/Ba2/BB+. Ford also intends to allocate an amount equal to the net proceeds of the deal to be used to finance or refinance new or existing green projects, assets or activities that meet certain eligibility criteria.
Also on the slate, ANGUS Chemical Co. was nearing completion for its $200 million offering of five-year senior pay-if-you-can, pay-in-kind, or PIK, toggle notes. Talk for the tranche was set this morning with a 9.25% coupon and 99 original issue discount. Proceeds will be used to fund a dividend. The bonds are rated CCC/Caa2/CCC.
Offerings for SRS Distribution Inc., O-I Glass Inc., Colgate Energy Partners III LLC, Victra Finance Corp. and Parkland Corp. are also reflected in today's output.
DISH DBS Corp. remains on the current week's calendar with a sizable pitch. The DISH Network Corp. subsidiary is shopping $4 billion of senior unsecured bullet notes split across five- and seven-year tranches. Proceeds will be used to make an intercompany loan to DISH Network to finance the potential purchase of wireless spectrum licenses, and/or for general corporate purposes.
Additionally, deals for Energean PLC, PROG Holdings Inc. and Graphic Packaging International LLC are circulating in market.
Primary high-yield stories/links
High-yield forward calendar
PROG Holdings pitches $600M of senior notes to repurchase shares
DISH DBS shops $4B of secured bonds in 2 parts
ANGUS Chemical sets talk for $200M PIK toggle notes offering backing dividend
Refinancing
Colgate Energy firms pricing for $200M add-on to 2029 notes
Parkland firms pricing for upsized senior notes at wide end of talk
O-I Glass circulates price guidance for refinancing-driven high-yield bonds
Ford Motor launches $2.5B of 2032 green bonds at 3.25%; pricing today
Victra Finance firms pricing for upsized add-on to secured bonds due 2026
Graphic Packaging plans investor call for cross-border bond deal
M&A/LBO
SRS Distribution sets price talk for $700M offering of 8-year unsecured notes
Secondary high-yield market
Friday's risk-on tone eased slightly in today's session with high-yield cash trading flat to a quarter of a point lower as exchange-traded fund buying ebbed. The CDX HY 37 lost ground on the day for the first time in five sessions, edging down to 109.66, from 109.72 amid Friday's ETF action, which was the high close for the on-the-run contract since Sept. 23.
After a print-free end to last week, the new-issue pipeline ramped up with traders expecting around $8 billion of supply this week. Half of that will come in the form of a two-tranche secured-note offering from DISH DBS Corp. to fund the purchase of wireless spectrum licenses. Those plans depressed longer-dated DISH bonds and prompted a one-notch downgrade from S&P Global Ratings. DISH's May placement of 5.125% senior unsecured notes due 2029 fell 2.75 points, to a fresh low of 92.75 and a yield of about 6.347%, while the less heavily traded 7.375% senior unsecured notes due 2028 shed 2.5 points, to trade at 102.75.
Bonds backing Diamond Sports Group LLC surged this morning after parent Sinclair Broadcast Group sent a clear signal of its intent to push ahead with the launch of a direct-to-consumer streaming service by repurchasing all outstanding revolver borrowings and increasing the size and maturity of the facility. The DSG 6.625% senior notes due 2027 garnered 4.5 points in early trading before paring intraday gains to 2 points to close around 27.5, for a yield of about 41.748%.
Occidental Petroleum Corp. bonds extended gains made on a Friday earnings beat, with the borrower's senior long bonds adding about 2.5 points on the day as traders and investors processed CEO Vicki Hollub's admission that the company will likely hit its net debt target of $25 billion ahead of schedule and then begin diverting excess cash flow to dividend payments. The company's 4.20% 2048 notes and 4.30% 2039 notes were up around 2.625 points apiece, at 101.75 and 103.75, respectively.
Reopening trades extended Friday gains as the U.S. ended its 18-month pandemic travel ban to allow entry to vaccinated travelers. American Airlines Group Inc.'s 3.75% senior notes due 2025 picked up another 0.625 points to a fresh pandemic-era high just north of 95. The Wynn Las Vegas LLC. 5.25% notes due 2027 advanced by the same amount, to trade at 102.75, after sliding to lows around 100.5 in the wake of the Macao government's September move to overhaul the city's gambling laws.
Secondary high-yield stories/links
Diamond Sports debt jumps as Sinclair buys revolver rights
High-grade market
Issuance today conformed to syndicate projections for a front-loaded week of issuance ahead of the Thursday U.S. Veterans Day holiday, as nine issuers placed $10.38 billion of new supply across 16 tranches, when excluding a $1.3 billion preferred offering from The Bank of New York Mellon Corp. (LCD's issuance totals excluded SAS and hybrid offerings). That followed on active markets one week ago as well, when eight issuers last Monday completed deals totaling $11.25 billion, or more than half the $20.6 billion in total volume for the full week. Issuance projections for this week generally pivot around totals in the low $20 billion range.
Refinancing was the primary motivating factor today for offerings from Sherwin-Williams Co. ($1 billion), Host Hotels & Resorts LP ($450 million), AvalonBay Communities Inc. ($400 million), Safehold Operating Partnership LP ($350 million) and Nvent Finance Sàrl ($300 million). The deals for AvalonBay and Host Hotels were designated as green bonds, and Northwest Natural Gas Co. priced $130 million of sustainability notes, against the backdrop of a hefty $2.5 billion high-yield green bond pricing from Ford Motor Co.
Rounding out today's slate of deals were benchmark prints for Westpac Banking Corp. ($5.5 billion), Cargill Inc. ($1.25 billion) and Equitable Financial Life Global Funding ($1 billion).
Distressed news stories/links
Diamond Sports debt jumps as Sinclair buys revolver rights
Joe's Jeans to be sold via bankruptcy court-approved deal
