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Mydentist Wraps 1st Sterling High Yield Bond Deal Since Brexit Vote

Mydentist on Friday placed bonds via Credit Suisse (B&D) and J.P. Morgan as global coordinators and joint physical bookrunners on the deal, with Goldman Sachs, ING, Lloyds, Mizuho, Societe Generale CIB, and Royal Bank of Scotland as bookrunners. Pricing was accelerated, with the deal originally due to roadshow through Monday. The fixed-rate notes came at the tight end of guidance, while the OID on the FRNs was reduced. The company has also privately placed £130 million of second-lien notes due 2023. Proceeds will be used to refinance the borrower’s outstanding notes and revolver drawings. As reported, the deal includes two unusual features — a new element to portability and the listing of the bonds on the Channel Islands Securities Exchange. Note, these will be the first new sterling bonds since the U.K. voted to leave the European Union last month. IDH rebranded to Mydentist in 2015. It operates a 600-plus network of practices in the U.K. Carlyle bought a majority interest in 2011. Terms:

Issuer IDH Finance
Ratings B/B2/B+
Amount £275 million
Issue Secured
Coupon 6.25%
Price 100
Yield 6.25%
Spread B+575
Maturity Aug. 15, 2022
Call nc2 (50%/25%/par)
Trade July 22, 2016
Settle Aug. 5, 2016 (T+10)
GloCos CS (B&D), JPM
Jt books GS, ING, Lloyds, Mizuho, SG, RBS
Px talk 6.25–6.5%
Notes Cut NC period from NC2.5
Issuer IDH Finance
Ratings B/B2/B+
Amount £150 million
Issue Secured
Coupon L+600
Price 99.5
Floor 0%
Maturity Aug. 15, 2022
Call nc1 (101/par)
Trade July 22, 2016
Settle Aug. 5, 2016 (T+10)
GloCos CS (B&D), JPM
Jt books GS, ING, Lloyds, Mizuho, SG, RBS
Px talk L+600 at 99

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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With Brexit, 4th of July, US High Yield Bond/Leveraged Loan Marts Take Week Off

US leveraged finance issuance

There was practically zero new issuance in the U.S. leveraged loan and high yield bond markets last week, as all eyes were on the post-Brexit vote fallout and as market players took off early in anticipation of the Independence Day holiday.

Year to date, U.S. leveraged loan issuance stands at $209.6 billion, down 10% from the same period in 2015. High yield bond issuance totals $118.9 billion, down a hefty 36% from last year.

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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Another Hefty Cash Withdrawal for US High Yield Bond Funds this Week

U.S. high-yield funds recorded an outflow of $1.63 billion in the week ended June 29, according to the weekly reporters to Lipper only. This is the third-consecutive outflow, after $766 million last week and $1.8 billion two weeks ago, for a total of roughly $4.2 billion redeemed over that span.

US high yield bond flowsThe influence of ETFs was significantly diminished this past week, with mutual fund outflows of $1.9 billion—the largest in 28 weeks—dented by inflows of $267 million to the ETF segment. In contrast, last week the ETFs were 20% of the outflow, and two weeks ago the ETFs were 87% of the outflow.

Whatever that might say about fast money, hedging strategies, and other market-timing efforts, this week’s fresh net outflow drags the trailing four-week average deeper into the red, at negative $862 million per week, from negative $419 million last week and from negative $368 million two weeks ago. The current observation is the most deeply negative reading in 21 weeks.

The year-to-date total infusion contracts a bit to $3.2 billion, with 17% ETF-related. Last year at this point, after 25 weeks, the $1.2 billion net inflow was based $1.9 billion of mutual fund inflows hit by $706 million of ETF redemption.

The change due to market conditions this past week was negative $680 million, for barely 0.4% against total assets of $188.4 billion at the end of the observation period. The ETFs account for about 20% of the total, at $37.6 billion. — Matt Fuller

Follow Matthew on Twitter @mfuller2009 for leveraged debt deal-flow, fund-flow, trading news, and more.

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.