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Numericable Issued the Most Junk Bonds in the Week to April 8

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Pricing trends

The high yield market saw continuous growth in the primary market with the highest year-to-date (or YTD) issuance volume in the week ending April 8. The deal flow in the primary market was up from six deals getting priced in the week ending April 1 to eight in the last week.

Mutual funds like the PIMCO High Yield Fund–Class A (PHDAX) and the Fidelity High Income Fund (SPHIX) invest in junk bonds. Meanwhile, ETFs like the SPDR Barclays Capital High Yield Bond ETF (JNK) and the iShares iBoxx $ High Yield Corporate Bond Fund (HYG) also invest in junk bonds.

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Issuance by Numericable SFR

Numericable SFR is a French cable and telecommunications company. It issued dollar-denominated junk bonds worth $5.2 billion on April 6. The senior notes were rated B1/B+ and carried a coupon of 7.4%. The bonds will mature in 2026 and were issued at 100% of the aggregate principal amount at a yield to worst of 7.4%. The company will use the proceeds of the loan for refinancing purposes.

Issuance by Charter Communications

Charter Communications (CHTR) is an American cable and telecommunications company. It issued dollar-denominated junk bonds worth $1.2 billion on April 7. The senior notes were rated B1/BB- and carried a coupon of 5.5%. The bonds will mature in 2026 and were issued at 100% of the aggregate principal amount at a yield to worst of 5.5%. The company will use the proceeds of the loan for refinancing purposes.

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Issuance by MGM Growth Properties

MGM Growth Properties issued dollar-denominated junk bonds worth $1.1 billion on April 6. The senior notes were rated B2/B+ and carried a coupon of 5.6%. The bonds will mature in 2024 and were issued at 100% of the aggregate principal amount at a yield to worst of 5.6%.

The proceeds from the offerings will be used to back the spin-off of MGM Growth Properties, the newly formed real estate investment trust from MGM Resorts International (MGM).

Issuance by Sunoco LP

Sunoco LP (SUN), a subsidiary of Energy Transfer Equity LP (ETE), operates convenience stores and retail fuel sites and distributes motor fuel to convenience stores, independent dealers, and commercial customers. It issued dollar-denominated junk bonds worth $800 million on April 4. The senior notes were rated Ba3/BB- and carried a coupon of 6.3%. The bonds will mature in 2021 and were issued at 100% of the aggregate principal amount at a yield to worst of 6.3%. The company intends to use the net proceeds from the notes for refinancing purposes.

In the next article, we will look at high-yield bond fund flows and yield movement of bond funds.

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