Commentary & Deal Flow

After the busiest Labor Day week since 2020, the US high yield new issue market is starting this week on a very active note. Five new issues were announced this morning and three of them will price today. 

Announced this morning and pricing this afternoon in the US high yield new issue market are Millrose Properties Inc $500m 7yNC3 sr notes (IPT 6.50% area); Antero Midstream Partners LP $500m 8yNC3 sr notes (IPT Very Low 6s); and NCL Corp Ltd sr notes 2-part, consisting $1.025bn 5.25yNC2 (IPT low 6s) and $1.025bn 8yNC3 (IPT mid 6s).

Also announced today was Amkor Technology Inc $400m 8yNC3 sr notes (IPT low-mid 6s), pricing tomorrow; and J.P. Morgan, on behalf of Hawaiian Electric Industries, Inc/Hawaiian Electric Company, Inc announced a series of investor calls. A $400 million 8-year senior unsecured notes private offering may follow. 

The European high yield market remains in gear with two new deals announced this morning - VZ Secured Financing BV (Vodafone Ziggo) EUR650m (from benchmark size) 7yNC3 sr sec notes, final yield 5.25% at par (vs price talk 5.25%-5.50% and IPT of mid 5s), pricing today; and 888 Acquisitions Ltd sr sec notes 2-part, consisting EUR 400m minimum 6yNC2 (IPT mid-to-high 8s) and GBP TBD add-on to its 10.75% sr sec notes due 05/15/30 (IPT 100.00-100.50), roadshow ending Wednesday.

The US high yield new issue market is extending gains along with treasuries this morning. After last week’s disappointing jobs numbers, UST yields are continuing to fall (10y -2bp at 4.05%), while stocks are marching higher (DJIA +63, S&P +24, NASDAQ +148). The US high yield cash market is unchanged to up an 1/8 of a point on very light flows. 

The CDX HY43 is down almost 1/16 of a point at 107.278.

CFR High Yield Forward Calendar

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

VZ Secured Financing BV (VodafoneZiggo) (ZIGGO) EUR650m (from benchmark size) 144A/Reg S  sr sec notes due 2032 (7y). NC3 (MWC B+50bp) (50%,25%,par). Equity claw: 3y 40%. Special call: 10% per year the first 3 years at 103. Expect B1/B+/BB. Via DB (B&D)/GS/ING jt physical books/BNP/CA/Citi/Nomura/Rabo/Scotia/SocGen jt books. No reg rights. List ISE. New York law. CoC at 101. Denoms: 100kx1k. IPT: mid 5s. Price talk: 5.25%-5.50%. Final terms: EUR650m at 5.25% at par. Did investor call at 10:30am UKT 09/08. Books closed at 2:30pm 09/08. Reconfirms due by 3:30pm UKT 09;09. Pricing 09/08 UK afternoon. UOP: repay debt, primarily its TLB due 2028. Biz: provides video, broadband fixed-line telephony and mobile services to residential and business customers in the Netherlands. VodafoneZiggo is a 50:50 joint-venture between Vodafone Group and Liberty Global. HQ: Utrecht, Netherlands.

Netroadshow link: https://urldefense.com/v3/__https:/www.netroadshow.com/events/login/LE9zwo3jk92VLOsH0gkC7hjV90QFwuxSbaR__;!!O2kDR7mm-zSJ!q9sIX_Bh5YYhI6pUNkCcp4na_DyGn_HVmTRQlU-Jfck6PZat_F1WWb66LNtTGbj6OKViTJgACj-HDkegOYb554mQ$/

Millrose Properties Inc (MRP) $500m 144A/Reg S sr notes due 2032 (7y). NC3 (50%,25%,par). Ba3/(Existing BB/BBB-) (stable/stable/stable). Via JPM/GS/BofA/Citi/WFS/Citizens/Mizuho jt books. No reg rights. Denoms: 2kx1k. IPT: 6.50% area. Investor call at 11am 09/08. Pricing 09/08 afternoon. UOP: along with cash on hand, to repay the entire $500m left on its  DDTL. Biz: a REIT that purchases and develops residential land and sells finished homesites to home builders by way of option contracts with predetermined costs and takedown schedules. It was spun off from Lennar in Feb 2025. HQ: Miami, FL.

Deal Roadshow link: https://dealroadshow.com/e/MOMENTUM25. Entry code: MOMENTUM25.

Antero Midstream Partners LP/Antero Midstream Finance Corp (AM) $500m 144A/Reg S sr notes due 2033 (8y). NC3 (MWC T+50bp) (par + 50%). Equity claw: 3y 35%. Existing Ba3/BB+. Via WFS/JPM/BofA/Barc/Citi/Mizuho/PNC/RBC/SMBC Nikko/TSI jt books, UBS, Comerica as co-managers. No reg rights. Denoms: 2kx1k. Settles T+10. IPT: Very Low 6s. Investor call at 11am 09/08. Pricing 09/08 afternoon. UOP: along with a draw on its revolver, to redeem in full its $650m 5.75% notes due 03/01/27 (callable at 100). Biz: owns, operates and develops midstream gathering, compression, processing and fractionation assets as well as integrated water assets that primarily service Antero Resources Corp's properties located in West Virginia and Ohio. HQ: Denver, CO.

NCL Corp Ltd (NCLH) $2.05bn 144A/Reg S sr notes 2-part. (Existing B3)/B+ (--/positive). Via MS (D&B)/JPM/BNP/CA/Barc/Citi/Citizens/GS/Mizuho/TSI/WFS/Nordea/Commerz/BBVA/DNB/SEB jt books. No reg rights. CoC at 101. Settles 01/22 (T+10). 144A CUSIP: 62886HBR1. 

    - $1.025bn due Jan 2031 (5.25y). NC2. Denoms: 2k1k. IPT: low 6s.

    - $1.025bn due Sept 2033 (8y). NC3. Denoms: 2kx1k. IPT: mid 6s.

Investor call at 11am 09/08. Pricing 09/08 afternoon. UOP: along with cash on hand, to fund the tender offer for its 5.875% sr se notes due 2027 and 5.875% sr notes due 2026, redeem all of its 8.125% sr sec notes due 2029. Biz: cruise line operator (NCL Corp Ltd is a sub of Norwegian Cruise Line Holdings LTD), which operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands. HQ: Miami, FL.

Amkor Technology Inc (AMKR) $400m 144A/Reg S sr notes due 2033 (8y). NC3 (par + 50% of coupon). Equity claw: 3y 40%. (Existing Ba3)/BB/(BB+) (--/positive/--). Via BofA/BNP/DBS/MUFG/SMBC/Mizuho/MS/GS/WFS/Key jt books, Evercore, HSBC, CA, PNC as co-managers. No reg rights. CoC at 101. Denoms: 2kx1k. IPT: low-mid 6s. Investor call at 11am 09/08. Pricing 09/09. UOP: along with cash on hand, to redeem its $400m 6.625% sr notes due 0/15/27 (callable at 100). Biz: OSAT (outsourced assembly and test) srvice provider in the semiconductor industry. HQ: Tempe, AZ.

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. B2/B (positive/stable). 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.

888 Acquisitions Ltd (GAMHOL) EUR516m eqivalent (EUR/GBP) 144A/Reg S sr sec 2-part. Existing B2/B-/BBB-. List ISE. NY Law.

    - EUR TBD (EUR400m minimum) sr sec notes due 2031 (6y). NC2 (50%,25%,par). Via DB (B&D)/Jeff/JPM jt glocos and physical books/Barc/NatWest jt books. Denoms: 100kx1k. IPT: mid-to-high 8s.

   - GBP TBD add-on to its 10.75% sr sec notes due 05/15/30 (4.75y). NC0.75 (05/15/26) (MWC G+50bp), then at 105.375, 102.688, 100. Equity claw: 0.75y 40% at 110.75. Special call: 10% per year the first 0.75 years at 103.00. Via DB/Jeff (B&D)/JPM jt glocos and physical bookks/Barc/Natwest jt books. Permanent Reg S ISIN: XS2498544415 XS2817891984. Immediately 144A fungible (Reg S after 40 days) with the original GBP400m issue priced 05/02/24. IPT: 100.00-100.50.

Roadshow (small group meetings) 09/08-10 (investor call at 2:30m UKT 09/08). UOP: refinance its EUR582m 7.558% sr sec note due 07/15/27 (callable at 101.890). Biz: 888, along with William Hill, is a leading online betting and gaming company. HQ: London, UK.

NetRoadshow link: https://www.netroadshow.com/events/login/LE9zwo4Apg73hlnGsqRj40Z8trMEuPw7TYw. 

Nordic deal: International Seaways Inc (NYSE: INSW) has mandated DNB Carnegie (B&D), Nordea, Arctic Securities and SEB as Joint Bookrunners to arrange a series of fixed income investor meetings commencing September 3, 2025. A five-year USD denominated senior unsecured bond issue may follow, subject to inter alia market conditions. The net proceeds from the contemplated bond issue are intended to be used for the refinancing of the Ocean Yield sale-and-leaseback agreement and for general corporate purposes.

Expected terms: International Seaways Inc (INSW) US$200m sr notes due 2030 (5y). NC2.5 (MWC), thereafter callable at par + 50 / 40 / 30 / 20% of Coupon (reducing every 6 months). Par call last 6 months. CoC at 101. Not rated. Via DNBC/Nordea/Arctic/SEB jt books. List Oslo. Norwegian law. Semi pay. UOP: prepay Ocean Yield sale-and-leaseback agreement and GCP. Biz: one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets. HQ: New York City.

- ROADSHOW -

Global Investor Call #1 (English): Date: Thursday, 4 September 2025; Time: 15:00 CEST / 09:00 EDT; Link: https://teams.microsoft.com/l/meetup-join/19%3ameeting_NzVmMzUwNWEtMjcxNC00Y2UzLWJhMGMtNzg1ZTlkYmQyNTEx%40thread.v2/0?context=%7B%22Tid%22%3A%224cbfea0a-b872-47f0-b51c-1c64953c3f0b%22%2C%22Oid%22%3A%222c74671d-f476-4659-b75b-ac80453ff4ee%22%2C%22IsBroadcastMeeting%22%3Atrue%2C%22role%22%3A%22a%22%7D&btype=a&role=a

Global Investor Call #2 (English): Date: Thursday, 4 September 2025 / Friday, 5 September 2025; Time: 22:00 EDT / 10:00 SGT; Link: https://teams.microsoft.com/l/meetup-join/19%3ameeting_ZjMzNWRiZjItZDgwYy00NzZlLWFhNzItYWZkZmJlNWRiNzM0%40thread.v2/0?context=%7b%22Tid%22%3a%224cbfea0a-b872-47f0-b51c-1c64953c3f0b%22%2c%22Oid%22%3a%222c74671d-f476-4659-b75b-ac80453ff4ee%22%7d

Nordic deal: Wellbore Integrity Solutions Parent Inc has mandated Arctic Securities as joint bookrunner to arrange a series of fixed income investor meetings commencing 5 September 2025. A USD denominated senior secured bond issue with a 4-year tenor may follow, subject to inter alia market conditions. The net proceeds from the contemplated transaction will be used to refinance existing debt and fund general corporate purposes.

 Expected terms: Wellbore Integrity Solutions Parent Inc (WELBOR) US$125m sr sec 1st priority notes due 2029 (4y). NC2 (MWC), thereafter callable at par + 50/30/15/0% of the interest rate after 24/30/36/42 months. Via Arctic/Pareto jt books. List Frankfurt.  Norwegian law. CoC at 101. Semi pay. UOP: refinance debt, GCP. Equity sponsor: Rhone. Biz: oil field services. HQ: Houston, TX.

J.P. Morgan, on behalf of Hawaiian Electric Industries, Inc. (“HEI”; NYSE:HE) and Hawaiian Electric Company, Inc. (“HECO”), a wholly-owned subsidiary of HEI, will arrange a series of virtual fixed income investor calls. Subject to market conditions, a $400 million 8-year senior unsecured notes private offering pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and Regulation S by HECO may follow. The net proceeds of any such potential offering would be intended to support HECO’s financing of capital expenditures, repaying long-term debt and/or short-term debt, including its revolving credit facility and term loan, used to finance or refinance capital expenditures and/or reimburse funds used for the payment of capital expenditures. An investor presentation will be made available on DealRoadshow (https://dealroadshow.com/e/HECO2025).

Company Overview: HECO and its operating subsidiaries are regulated electric public utilities engaged in the production, purchase, transmission, distribution and sale of electricity in Hawaii.

Company Representatives: Scott DeGhetto - Executive Vice President and Chief Financial Officer (Hawaiian Electric Industries, Inc.); Paul K. Ito - Senior Vice President, Chief Financial Officer and Treasurer (Hawaiian Electric Company, Inc.)      

====================== [ 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 $600m 10.50% sr notes due 06/01/27 (called 08/25/25 at 105.25). 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).

++++08/25/2025 update: the acquisition closed and the $600m 10.50% sr notes due 06/01/27 were called at 105.25. The deal was funded with the $1.25bn bridge loan from Barc and DB. FIP also issued $1bn series A pfd units with warrants for FIP common shares.

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).

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. Closing expected lat Q4. 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. (Acquisition announced 06/11/2025).

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, early tender deadline 09/05). 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.