The pace of new high-yield issuance slowed dramatically with just $1.72 billion hitting the tape on Feb. 4 as investors continue to clamor for supply. The new bonds broke into a firm market buoyed by strong corporate earnings and better-than-expected jobless numbers. They were able to extend gains as the broader market tracked equities higher as a disappointing January jobs report helped the Biden administration muscle its $1.9 trillion stimulus-package through the Senate.
Rent-A-Center, Inc.'s much vaunted $450 million M&A-driven offering of 6.375%, eight-year senior unsecured notes outperformed, powering to trades just north of 104 after breaking to a 100.375 context. The bonds were moving in twice the volume of the next-most-traded deal in what looks to be another light session.
Victra Finance Corp.'s $660 million of 7.75% five-year senior secured notes, issued via LSF9 Atlantis Holdings LLC, hit 103.12 on the highs after opening to trades on either side of 102. The bonds were trading at 102.75 this afternoon on largely buyer-driven action. Proceeds will be used to refinance the company's existing term loan and pay a shareholder dividend that was upsized along with the bond offering.
Full House Resorts Inc. and Danaos Corp. each inked seven-year offerings to refinance existing debt. The former's upsized $310 million of 8.25% secured notes, which also help fund a Colorado casino expansion, was changing hands a quarter of a point off the highs at 103 after breaking to a 101.5/101.75 context. Danaos' $300 million of 8.50% unsecured notes, part of a $1.25 billion refinancing effort, was trading at the highs at 102.375 on slightly lighter volume.
CITGO Petroleum Corp.'s Feb. 3 placement of $650 million of 6.375% secured notes due June 2026 continues to trade in decent volume and at fresh highs around 102. PetSmart Inc.'s $1.2 billion of 4.75% seven-year secured notes, meanwhile, are trading half a point below their 103 highs on similar volume.