Monday’s deals broke to healthy interest in the afternoon session, but quotes faded modestly this morning amid a third day of softer market tone. Lear 4.75% notes due 2023, for one, freed in a 101 context, from par issuance, with some quotes as high as 101/101.25, but the paper is wrapped around 100.5 this morning, according to sources.
Likewise, Regal Entertainment 5.75% bonds due 2025 changed hands at 101.5 on the break Monday afternoon, from par issuance, trade data show. Today’s markets are generally 100.5/100.75, with trades reported at both side of the quote, according to sources and trade reports.
Other quotes also have been scaled back, with Halcon Resources 8.875% notes due 2021 slipping a quarter of a point, to 105.75/106.75, versus a reopening at 105 last week, though outperformers still abound, such as Bombardier 6.125% notes due 2023, which are still bracketing 103, from par issuance, sources said.
In synthetics, the unfunded HY CDX index cooled by an eighth of a point, to 101.75/102, according to Markit. It is now off seven eighths of a point from the series peak on Thursday but still up 1.5 points this year.
Lear hit the market yesterday via bookrunners Citi, Barclays, J.P. Morgan, RBC, and UBS, according to sources. As reported, terms on the BB/Ba2 transaction were inked at the tight end of talk and at the target size of $500 million, with proceeds backing general purposes, which might include redemption of $70 million of notes in 2013, investments in additional component capabilities and emerging markets, and share repurchases, according to the company.
Regal Entertainment drove by the primary market via bookrunners Credit Suisse, Bank of America, Barclays, Deutsche Bank, and Wells Fargo, according to sources. Terms for B-/B3 offering were finalized at the target size of $250 million, with proceeds also supporting general corporate purposes, which may include future acquisitions and the refinancing of debt, SEC filings show. – Matt Fuller (212) 512-4900