The high-yield bond secondary market was digesting another $2.7 billion of supply today from borrowers eager to refinance at better rates. As has been the case all week with new issues, performance was mixed, with two of the tranches holding above 101, one dipping below par and one barely trading in this morning's softer market.
Twilio Inc. made its high-yield bond market debut with a liquidity-driven $1 billion senior notes offering split evenly between 3.625% eight-year bonds and 3.875% 10-year notes. Both tranches broke to a 100.625 context, with the longer tenor testing 102 before sellers stepped in. Those bonds were driving the morning's generally light trading volumes, changing hands between 100.125 and 100.875. The eight-year bonds topped out at 101.75, also on good two-way action, and were trading this morning around 101/101.375.
Cinemark Holdings Inc. inked $405 million of tightly priced 5.875% five-year senior notes that were trading actively at a weighted average of 100.75 after breaking to a 100.5 context and hitting 101.125 on the highs. The movie theater chain, which burned through some $65 million in cash a month in the fourth quarter, plans to use proceeds in a tender offer for its 5.125% notes due 2022, which this morning hit a new pandemic-era high of 100.375 after dipping into the low-70s in March.
Trading at decent volume, Consolidated Communications' $400 million of 5% 7.5-year secured notes came at the tight end of guidance and broke to initial trades at 100.125/100.375, but the bonds topped out at 100.5 and were bracketing par in late morning action, even as the broader market firmed a touch. Proceeds will back the partial repayment of a term loan B due October 2027, which will also be repriced.
A $900 million placement of 4% eight-year senior notes that LPL Holdings Inc. inked at talk has traded lightly from the outset, in round lots and never more than half a point above par. Proceeds will be used to refinance the same amount of LPL's similarly illiquid 5.75% senior notes due 2025, which today dipped below 103 for the first time since June 2020.
Monday's $1.075 billion of 4.625% eight-year unsecured notes from Tronox Holdings PLC continued to trade at volume, but at a weighted average of 99.5, from early highs of 101.125.