Buyout Loans Set to Hit the Market After Memorial Day Holiday

Article content

(Bloomberg) — A busy period for high-yield debt sales shows no signs of stopping in June, with bank meetings set for two leveraged buyout loans following the U.S. Memorial Day holiday.

Lender calls will be held Tuesday for cybersecurity software provider Proofpoint Inc.’s $2.6 billion term loan to finance its buyout by Thoma Bravo, and Protective Industrial Products Inc.’s $135 million term loan to help finance Odyssey Investment Partners’ buyout of the firm.

Investors continue to pour money into U.S. loan funds, adding $862 million of cash in the week ended May 26, according to Refinitiv Lipper. That’s the 20th consecutive week of gains.

The busiest May on record for junk bond sales wrapped up this week, with supply nearly hitting $47 billion. The junk bond calendar is so far quiet heading into June.

A potential ratings upgrade to investment-grade status may be in the cards for Dell Technologies Inc., which reported strong first quarter results and boosted its debt reduction target this week. Dell credit default swaps tightened 17 basis points on Friday as investors digested the news.

Within distressed debt, forbearance agreements expire for mall owner Washington Prime Group Inc. on June 2 — pending another extension — and for GTT Communications Inc. on Thursday, June 3. Trilogy International Partners also faces an expiration for its exchange of notes due 2022 June 3.

Article content

Nine Energy Service Inc. and PBF Energy Inc. are among the energy companies that will present at the Wells Fargo Energy Virtual Conference next week.


Syndicate desks are calling for $110 billion of fresh investment-grade supply in June, a slowdown from the $136.5 billion that priced this month. May was the first month this year where primary market sales didn’t meet expectations, with equity volatility tempering volume, Bloomberg’s Michael Gambale wrote.

Most syndicate desks expect between $20 billion to $25 billion in volume for the upcoming holiday-shortened week.

Analysts are taking note of a “rapid decline” of inflows into high-grade bond funds. The amount added to investment-grade funds this week were the lowest since early November, according to Lipper data.

Slowing inflows to bond mutual funds could “expose” the market to widening spreads if the pace of net supply remains steady or increases, Citigroup Inc. strategist Daniel Sorid wrote Friday. Citigroup expects high-grade bond spreads to be “biased wider” over the next 12 months, seeing “signs that valuations may be reaching slightly excessive levels.”

Source link


5 Things To Consider Before Choosing Metal Roofing

Are you in the planning process for a new home? Looking to replace your current roof?

Burnt-out container ship sinks in sea; Sri Lankan Navy bracing for possible oil spill

The Sri Lankan Navy on Wednesday said that it is getting ready to deal with a possible oil spill after the fire-stricken Singapore-flagged...

How to Create an App with No Programming Knowledge

Apps are abundant in today's society. They are on phones, computers, and even watches. It's no surprise that so many people want to create...

#Gaming-Metaverse Writing Contest 2021: Final Announcement

Hey, Gamers! Here we are again with the final announcement of #gaming-metaverse writing contest.Read the full storySource link