Yahoo Finance Cheniere Corpus Christi Holdings Issued Most Junk Bonds Last Week
US Stock Indexes Fell Last Week as Rate Hike Possibility Rose
Pricing trends
Issuance in the high yield primary market gained traction on an improved Market tone. Junk bond issuance rose last week compared to the previous week. The deal flow rocketed from five deals priced in the previous week to 11 last week.
Funds such as the PIMCO High Yield Fund – Class A (PHDAX) and the iShares iBoxx $ High Yield Corporate Bond Fund (HYG) invest in junk bonds.
Issuance by Cheniere Corpus Christi Holdings
Cheniere Corpus Christi Holdings, a wholly owned subsidiary of Cheniere Energy (LNG), issued junk bonds worth $1.3 billion on May 12, 2016. The senior secured notes were rated Ba2/BB- and carried a coupon of 7.0%. The bonds will mature on June 30, 2024, and were issued at 100% of the aggregate principal amount at a yield to worst of 7.0%. The company intends to use the proceeds of the loan for refinancing.
Issuance by NRG Energy
NRG Energy (NRG) is an integrated power company. It issued junk bonds worth $1.0 billion on May 9, 2016. The senior notes were rated B1/BB- and carried a coupon of ~7.3%. The bonds will mature on May 15, 2026, and were issued at 100% of the aggregate principal amount at a yield to worst of ~7.3%. The company intends to use the proceeds of the loan for refinancing purpose.
Issuance by Goodyear Tire & Rubber Company
The Goodyear Tire & Rubber Company (GT) designs and manufactures a variety of tires. It issued junk bonds worth $900 million on May 10, 2016. The senior notes were rated Ba3/BB and carried a coupon of 5.0%. The bonds will mature in June 2026 and were issued at 100% of the aggregate principal amount at a yield to worst of 5.0%. The company intends to use the proceeds of the loan for refinancing.
Issuance by Tesoro Logistics
Tesoro Logistics (TLLP), a subsidiary of Tesoro Corporation (TSO), issued Ba3/BB rated junk bonds worth $700 million on May 9. The two-tranche issue consisted of the following:
$250 million in ~6.1% senior add-on notes due in 2021. The notes were issued at ~100.3% of the aggregate principal amount at a yield to worst of ~6.1%.
$450 million in ~6.4% senior notes due in 2024. The notes were issued at 100% of the aggregate principal amount at a yield to worst of ~6.4%. The company intends to use the proceeds of the loan for refinancing.
In the next part of this series, we’ll look at high-yield bond fund flows and the yield movement of bond funds.
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