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Prime Security Services Issued the Most Junk Bonds Last Week

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Pricing trends

The primary high-yield market was pretty active last week. It recorded the second-largest year-to-date volume. However, the deal flow was slightly down from seven deals getting priced in the previous week to six 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 Prime Security Services

Prime Security Services—a subsidiary of Apollo Global Management (APO)—issued junk bonds worth $3.14 billion on April 20. The senior secured second-lien notes were rated B3/B- and carried a coupon of 9.3%. The bonds will mature on May 15, 2023. They were issued at 100% of the aggregate principal amount at a yield to worst of 9.3%. The company intends to use the proceeds of the loan for leveraged buyout of ADT (ADT).

Issuance by Altice Financing SA

Altice Financing SA—a subsidiary of Altice SA—issued junk bonds worth $2.75 billion on April 18. The senior secured notes were rated B1/BB- and carried a coupon of 7.5%. The bonds will mature on May 15, 2026. They were issued at 100% of the aggregate principal amount at a yield to worst of 5.5%. The company intends to use the proceeds of the loan for refinancing purposes.

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Issuance by Altice US Finance I Corporation

Altice US Finance I Corporation issued junk bonds worth $1.5 billion on April 19. The senior secured notes were rated Ba3/BB- and carried a coupon of 5.5%. The bonds will mature on May 15, 2026. They were issued at 100% of the aggregate principal amount at a yield to worst of 5.5%. The company intends to use the proceeds of the loan for refinancing purposes.

Issuance by NBTY

NBTY (NTY) manufactures, sells, and distributes vitamins and food supplements. It issued junk bonds worth $1.075 billion on April 21. The senior notes were rated Caa1/CCC+ and carried a coupon of 7.6%. The bonds will mature on May 15, 2021. They were issued at 100% of the aggregate principal amount at a yield to worst of 7.6%. The company intends to use the proceeds of the loan for refinancing purposes.

In the next part, we’ll look at high-yield bond fund flows and the bond funds’ yield movement.

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