Commentary & Deal Flow

After a two week lull, the US high yield new issue market is back in action today. There were three new deals announced this morning and two of which will price today. 

Announced this morning and pricing this afternoon in the US primary market are Dream Finders Homes Inc $300m 5yNC2 sr notes (IPT low 7s); and Kodiak Gas Services LLC $1bn sr notes 2-part, consisting $500m 8yNC3sr notes (IPT 6.75% area) and $500m 10yNC5 sr notes (IPT 7.00% area). 

Also announced in the US high yield market this morning was a roadshow for Global Medical Response Inc $1.6bn 7yNC3 sr sec notes (IPT low 8s), roadshow through next Tuesday, 09/10. 

After a three week vacation the European high yield market kicked back into gear this morning with three deals announced, all double-B rated. One of them is already priced, and one more is scheduled to price today. 

Announced this morning in the European high yield market and already priced is Iliad SA EUR600m (up from EUR500m) 6.5yNCL sr notes, priced 4.25% at 99.962, yield 4.25% (vs final yield of 4.25%, guidance of 4.375% area (+/-12.6bp) WPIR, and IPT of 4.75% area). 

Also announced this morning in the European high yield market were Rexel SA EUR400m 5yNC2 sr notes, price talk of 4.00% area (+/- 12.5bp) WPIR (vs IPT of 4.25% area), pricing today; and a mandate for Dometic Group AB EUR300m 5yNCL sr notes, investor calls today.

Pricing today in the Nordic market is DOF Group ASA US$150m 5yNC2.5 sr notes, final yield 8.125% (vs guidance of 8.00%-8.25% WPIR and IPT of 8.25%-8.50%).

The US high yield secondary market is weaker today along with stocks and treasuries. UST yields are rising this morning (10y +4bp at 4.27%), while stocks are sliding (DJIA -465, S&P -78, NASDAQ -336). The US high yield cash market is down an 1/8 - 1/4 point on very light flows. 

The CDX HY43 is down over a 1/4 point at 106.974.

High yield new issue priced today:

09/02/2025 Iliad Holding SAS (ILDFP) EUR600m (up from EUR500m) Reg S bearer dematerialized sr notes due 01/09/32 (6.5y). NCL (MWC B+30bp, 3mo par call, 75% clean-up call). Expect Ba2/BB/BB (--/positive/positive). Via BNP/BofA/CA/Commerz/Natixis (B&D)/UniCredit jt active books/CIC/ING/JPM/La Banque Postale/Mizuho/MUFG jt passive books, Banco Sabadell, Santander, SMBC as co-managers. List ISE. French law.  CoC at 100. Annual pay (Act/Act ICMA, long first. Denoms: 100kx100k. Settles 09/09 (T+5). ISIN: FR001401121H7. IPT: 4.75% area. Guidance: 4.375% area (+/-12.6bp) WPIR. Final terms: EUR600m at 4.25%.

Priced: 4.25% at 99.962, yield 4.25%. +188.6bp vs DBR 0% 08/15/31.

A Deal Roadshow is available. Books closed at 12:45pm UKT 09/02. Reconfirms were due by 1:45pm UKT 09/02. Books over EUR1.6bn at launch (from EUR1.7bn at guidance). UOP: GCP. Iliad Holding SAS is 100% owned by Xavier Niel. Biz: a leading European telecom provider, offering fixed internet access in France and Poland, and mobile internet access in France, Italy and Poland. HQ: Paris, France.

Deal Roadshow: https://dealroadshow.com/e/ILIAD25. Entry code: ILIAD25.

CFR High Yield Forward Calendar

===================== [ 09/01//2025 Week ] ===============

Rexel SA (RXLFP) EUR400m Reg S only sr notes due 2030 (5y). NC2 (50%,25%,par). Equity claw: 2y 40%. Ba1/BB+ (stable/stable). Via BNP (B&D)/CIC/Natixis jt glocos and physical books/ING/RBC jt books, Danske, DB co-lead managers. No reg rights. List Lux. NY law. CoC at 101. Denoms: 100kx1k. Settles (T+5). IPT: 4.25% area. Price talk: 4.00% area (+/- 12.5bp) WPIT. Roadshow (1-on-1s) 09/02 (investor call at 10:30am UKT 09/02). Books close at 3:45pm UKT 09/02. Pricing 09/02 UK afternoon. UOP: GCP, including refinancing near term debt obligations (EUR267m CP and other short-term borroings). Biz: a distributor of low and ultra-low voltage electrical products for professional clients in three markets: residential, nom-residential and industrial. HQ: Paris, France. 

Deal Roadshow entry code: REXEL25; Evercall GIC registration link: https://evercall.co/OACC/02779.

Nordic deal: DOF Group ASA (DOFGRP) US$150m sr notes due 09/16/30 (5y). NC2.5 (MWC), thereafter callable at par + 50/ 40/ 30/ 20% of the Interest Rate after 30 / 36 / 42 / 48 months. Callable at 100% last six months​. Not rated. Via DNB/Pareto jt glocos/Clarksons/Danske jt books. List Oslo. Norwegian law. CoC at 101. Semi pay. Settles 09/16. ISIN: NO0013647701.  IPT: 8.25%-8.50%. Guidance: 8.00%-8.25% WPIR. Final terms: $150m at 8.125%. Roadshow (1-1 meetings) started 08/29. Books close at 4pm CEST 09/02. Pricing 09/02. UOP: refi debt, GCP. Biz: is a leading provider of offshore and subsea services to the offshore energy industry. The company owns and operates a fleet of modern offshore/subsea vessels which is combined with strong engineering capabilities to provide integrated offshore services globally. HQ: Storebo, Norway.

Global Investor Call #1- Date: Monday, 1 September, Time: 11:00 CEST, Link: https://teams.microsoft.com/l/meetup-join/19%3ameeting_MmI2NDgzYTAtNGI2My00YzI2LWJhNWMtMWY5YWUxMzAwNWJj%40thread.v2/0?context=%7B%22Tid%22%3A%224cbfea0a-b872-47f0-b51c-1c64953c3f0b%22%2C%22Oid%22%3A%229dd306f2-be12-4fa5-b89a-0e445936890c%22%2C%22IsBroadcastMeeting%22%3Atrue%2C%22role%22%3A%22a%22%7D&btype=a&role=a

Global Investor Call #2 - Date: Tuesday, 2 September, Time: 15:00 CEST / 09:00 EDT, Link: https://teams.microsoft.com/l/meetup-join/19%3ameeting_ODFkNzYwMTctNDhhMy00MDJiLWI2YjktYjFjNTUyYzg5MjAz%40thread.v2/0?context=%7B%22Tid%22%3A%224cbfea0a-b872-47f0-b51c-1c64953c3f0b%22%2C%22Oid%22%3A%229dd306f2-be12-4fa5-b89a-0e445936890c%22%2C%22IsBroadcastMeeting%22%3Atrue%2C%22role%22%3A%22a%22%7D&btype=a&role=a

Kodiak Gas Services LLC (KGS) $1bn 144A/Reg sr notes 2-part. B1/BB-/BB (stable/--/--). Via JPM/Barc/CIBC/GS/Mizuho/USB jt books, FITB, PNC, Regions, TSI, Academy as co-managers. No reg rights.

    - $500m due 2033 (8y). NC3. Denoms 2kx1k. IPT: 6.75% area.

    - $500m due 2035 (10y). NC5. Denoms: 2kx1k. IPT: 7.00% area.

Investor call at 11am 09/02. Pricing 09/02 afternoon. UOP: to repay a portion of the amounts drawn on its ABL revolver, which will be reduced to $2bn. Equity sponsor: EQT AB Group. Biz; one of the largest contract compression services providers in the US. HQ: Montgomery, TX. 

Deal Roadshow direct link: https://dealroadshow.com/e/KGS2025 (Entry code KGS2025). Available 10 minutes prior.

Dream Finders Homes Inc (DFH) $300m 144A/Reg S sr notes due 2030 (5y). NC2 (MWC T+50bp) (50% of coupon) . Equity claw: 2y 40%. Existing B1/BB-/BB-. Via BofA/Citizens/BMO/GS/USB jt books, Texas Capital, WauBank, Zions, BTIG, Regions as co-managers. No reg rights. CoC at 101. Denoms: 2kx1k. IPT: low 7s. Did investor call at 10:30am 09/02. Pricing 09/02 afternoon. UOP: repay $300m of the $1.125bn drawn on its sr unsecured credit facility. Biz: Dream Finders Homes designs, builds and sells homes in high growth markets employing an asset-light lot acquisition strategy with a focus on the design, construction and sale of single- family entry-level, first-time move-up and second-time move-up homes, as well as offer title insurance and mortgage banking solutions through its mortgage banking joint venture. HQ: Jacksonville, FL.

Iron Mountain Inc (IRM) (Ba3/BB- Stable) UBS is organising a series of EMEA fixed income investor meetings on 2nd – 3rd September 2025. Subject to market conditions, a long-dated EUR capital markets transaction may or may not follow. Iron Mountain Incorporated will be represented by: David Buda, Senior Vice President, Finance and Treasurer. Biz: record and data storage and information management services. HQ: Boston, MA.

Dometic Group AB (publ) (DOMSS), provider of branded solutions for mobile living, rated Ba3 (stable) by Moody's and BB- (stable) by S&P, has mandated BNP PARIBAS, Danske Bank, DNB Carnegie, Nordea, and SEB to arrange a series of fixed income investor calls commencing today, Tuesday 2nd September 2025. A Deal Roadshow presentation with voice-over has been made available. Danske Bank will be coordinating logistics.

A RegS, bearer, senior unsecured EUR 300m (WNG) 5-year bond issued under Dometic’s EMTN programme is expected to follow, subject to market conditions. The notes will be listed on Euronext Dublin, Regulated Market and is expected to be rated Ba3/BB- by Moody’s/S&P. The company has concurrently announced a capped Tender Offer for EUR100m of its the outstanding EUR 300m 3.00% notes due May 2026 (ISIN: XS1991114858) (purchase price 100.300). Use of proceeds from the new issue will be used for refinancing of existing indebtedness including the concurrent Tender Offer. Biz: provider of branded solutions for mobile living. HQ: Stockholm, Sweden.

===================== [ 09/08//2025 Week ] ===============

Global Medical Response Inc (AIMEGR) $1.6bn 144A/Reg S sr sec notes due 2032 (7y). NC3. Equity claw: 3y 40%. Special call: 10% per year the first 3 years at 103. Existing B2/B. Via BofA/KKR/Barc/JPM/CapOne/GS/Regions/UBS/MS/Citi/Santander jt books. No reg rights. Denoms: 2kx1k. IPT: low 8s. Roadshow through 09/10 (investor call at 10am 09/08). UOP: along with the concurrent $3bn 1st lien term loan, to redeem its $585m 10% 1st lien notes due 10/31/28 (callable at 100) and its $19.7m 6.50% sr notes due 10/01/25 (callable at 100), repay its 1st lien term loan and partially redeem its Seris B pfd. Equity sponsors:  Ares Management, Ares Capital, Koch Equity Development, Ardian, and KKR. Biz: a provider of pre-hospital emergency medical servies and non-emergent transportation services. HQ: Lewisville, TX.

====================== [ 2025 ] ===============

FTAI Infrastructure Inc (FIP) (sec: B3/B-) $1,25bn notes. Via Barc/DB. UOP: fund the acquisition of Wheeling Lake Erie Railway Co (W&LE) for $1.05bn in cash. FTAI has received $2.25bn in capital commitment letters to help fund the purchase price as well as to refinance FIP's 10.50% sr notes due 6/1/27. FTAI has obtained a $1.25bn bridge facility with Barc and DB. In addition to debt, they obtained an equity commitment from Ares Management in which Ares will purchase $1bn of preferred stock. Closing is expected in Q3 2025. Biz: develops, acquires, owns and operates transportation and energy infrastructure businesses throughout North America. HQ: NYC. (Acquisition announced 08/07/2025).

S&P also sees Caesars Resort Collection LLC/CRC Finco Inc (CGPHLC) refinancing its $1bn 5.75% sr sec 1st lien notes due 07/15/25 (callable now at 101.438 and at 100 on 07/01/24) at the Caesars Entertainment level sometime this year. So there could be another $1bn bond issue from CZR.

In its rating assignment released Friday, S&P said it expects to resolve the CreditWatch listing on the secured debt when management refinances CRC's secured debt at parent Caesars, likely in 2024. At this point, S&P would expect CRC to guarantee Caesars' debt and to provide collateral to Caesars' secured debt, implying improved recovery prospects for secured lenders. We believe an upgrade for the secured debt would likely be limited to one notch. At the same time, the repayment of the remaining outstanding CRC debt would likely impair recovery prospects for unsecured lenders, who currently share CRC's residual value pro rata with secured lenders. As a result, S&P expects to lower Caesars' unsecured ratings once CRC's debt is repaid, but S&P expects a downgrade would be limited to one notch. Biz: gaming and hospitality company. HQ: Reno, NV. (Tender offer announced 01/18/24).

Tempur Sealy International Inc (TPX) possible secured and unsecured notes. UOP: fund the acquisition of Mattress Firm Group Inc from Steinhoff Intl Holdings NV for an enterprise value of approx. $4bn ($2.7bn cash and $1.3bn in stock (approx. 34.2m shares)). Post acquisition ownership split will be Mattress Firm 16.6% and Tempur Sealy 83.4%. The cash portion will be funded with a combo of cash on hand and new secured and unsecured debt, a portion of which will be used to repay Mattress Firm's outstanding debt. JPM is financial advisor to Tempur Sealy. GS/Barc/Jeff are financial advisors to Mattress Firm. Closing is expected in H2 2024. Biz: a leading designer, manufacturer, distributor, and retailer of bedding products worldwide. HQ: Lexington, KY. (Acquisition announced 05/09/2023).

++++09/24/24 update: TPX is in the market with a $1.6bn delayed draw term loan B via WFS/BofA/JPM/SMBC/TSI/TD. The proceeds, along with the existing $625m delayed draw term loan, a draw on its revolver, and cash flow will be used to fund the acquisition, if it happens. It appears there will not be any HY bonds.

++++10/11/24 update: TPX completed the refinancing (amend and extend) of its existing credit facilities ($500m term loan and $1.65bn revolver) and added an accordion feature that permits incremental borrowings of up to $850m and potentially substantially more subject to compliance with a specified secured leverage ration and certain other conditions. Via BofA (administrative agent)/JPM/WFS/ Sumitomo Mitsui jt lead arranges and jt books, TSI, HSBC, Scotia/TD/Mizuho/FITB as sr co-documentation agents.

++++02/05/25 update: The acquisition closed. The $2.715bn cash portion was funded with cash on hand, $625m draw on its delayed draw term loan, and $1.6bn term loan B. There was no bond financing.

Enovis Corp (ENOV) possible notes. UOP: fund the acquisition of LimaCorporate SpA for EUR800m (EUR700m cash and EUR100m Enovis common shares). JPM/UBS have provided a $800m bridge loan, which will be reduced by a planned $400m term loan and other debt and/or equity financing and possible asset sales proceeds. Closing early 2024. Biz: provides orthopedic medical products and services. HQ: Washington, DE. (Acquisition announced 09/25/2023).

++++01/03/24 update: the acquisition closed. It was funded with a $460m cvt notes issue, a $400m term loan, and cash on hand.

Endeavor Group Holdings Inc (EDR) possible notes. UOP: Silver Lake will buy 100% of EDR that it does not already own at $27.50 per share for an equity value of $13bn, and a combined total enterprise value of $25bn. Other minority investors are Mubadala Investment Co, DFO Management, Lexington Partners and Goldman Sachs Asset Management. New debt financing fully committed to by JPM/MS/BofA/GS/Barc/DB/RBC. Biz: a global sports and entertainment company (WME, IMG, OpenBet, UFC and WWE). Closing expected at the end of Q1 2025. HQ: Beverly Hills, CA. (Acquisition announced 04/02/2024).

++++03/24/25 update: the acquisition closed. It was funded with a $1.25bn term loan A, $3bn term loan B, and up to $3bn margin loan facility via EOC Borrower, $800m of pfd, and over $8bn in new and rollover equity.

Peabody (BTU) (existing sr unsec B3, l-t corp family rating B1) announced that it will acquire Anglo American's coking coal assets for $2.32bn in cash ($1.695bn at closing and $625m in deferred cash to be paid over a four-year period), also another $1bn in contingent consideration on the successful restart of the Grosvenor mine ($450m) & capped coal pricing, revenue sharing agreement over a five-year period ($550m). Peabody has secured $2.075bn committed bridge financing facility from Jefferies/DB/KKR, which is expected to be replaced by a mix of permanent financing, consisting of high yield secured notes, secured term loan, minority stake sales in certain mines, convertible unsec notes, common equity and reclamation bonding alternatives. Closing is expected mid-year 2025. Biz: a leading coal producer. HQ: St Louis, MO. (Acquisition announced 11/25/2024).

++++08/19/2025 update: The acquisition was terminated. BTU cited the fire at one of Anglo-American mines as creating a material adverse change (MAC).

Endo Inc (ENDP) $400m sr notes. Via GS. UOP: fund the acquisition of Mallinckrodt plc (MNK) in a stock and cash for an enterprise value of $6.7bn. Endo intends to refinance MNK's term loans and sr notes, and has received $900m in committed financing to do so ($500m incremental term loan and $400m  bridge loan) via GS. Closing is expected in Q4 2025. Bi: a specialty healthcare company offering branded and generic pharmaceuticals. HQ: Malvern, PA. (Acquisition announced 03/13/2025).

++++07/31/25 update: The merger closed. The deal was financed with a $1.2bn term loan

Sunoco LP (SUN) sr notes. UOP: along with possible pfd equity, to fund the acquisition of Parkland Corp for 0.295 SUNCorp units and C$19.80 in cash for a total transaction value of US$9.1bn (US$3bn of SUNCorp equity, US$2.6bn cash and the assumption of US$3.5bn of existing PKI net debt). SUNCorp is a new publicly traded vehicle which will own common equivalent units of Sunoco LP. The $2.6bn cash consideration is supported by a fully committed US$2.65bn bridge loan via Barc/RBC that is expected to be permanently financed through a combination of sr notes and pfd equity prior to closing. Shareholder meeting 06/24/2

 Closing expected in the second half of 2025. Biz: a leading energy infrastructure and fuel distributor MLP. HQ: Dallas, TX. (Acquisition announced 05/05/2025).

+++05/27/25 update: Parkland announced a consent solicitation from its noteholders to remove the CoC put in connection with the acquisition by Sunoco.

Allison Transmission Holdings Inc (ALSN) possible notes UOP: fund the acquisition of Dana Inc's (DAN) Off-Highway business for $2.7bn in cash. The deal will be funded with new debt and cash on hand. BofA/Barc/Citi are providing the committed debt financing. ALSN also has $750m of cash on han and $750m available under its revolver. Biz: the world’s largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, as well as a supplier of commercial vehicle propulsion solutions, including electric hybrid and fully electric propulsion systems. HQ: Indianapolis, IN.

Nexstar Media Group Inc (NXST) $2.6bn sr sec notes. Ratings TBD (current issuer credit ratings Ba3/BB+). UOP: along with cash on hand, a $2.99bn sr sec term loan and a $585m sr sec short-term facility, to fund the acquisition of TEGNA Inc (TGNA) for $22.00 per share, $3.5bn in cash, or a total enterprise value of $6.2bn, inclusive of Tegna's net debt, which will be refinanced or assumed at close. BofA/JPM/GS have committed to provide the debt financing. Closing is expected in Q4 2026. Biz:  is a leading diversified media company that produces and distributes engaging local and national news, sports and entertainment content across its television and digital platforms, including more than 316,000 hours of programming produced annually by its business units. HQ: Irving, TX. (Announced 08/18/2025).

Reworld Holding Corp (fka Covanta) (CVA) possible $400m notes, Existing sr notes B3/B/B-. UOP: fund the tender offer for its $400m 5% sr notes due 09/01/30 ($1,000 total consideration, including $50 early tender premium, Barc dealer manager). Equity sponsor: EQT Infrastructure (GIC is a 25% minority shareholder). Biz: a leader in sustainable waste solutions, providing innovative and environmentally responsible services to a global community. HQ: Florham Park, NJ.