Commentary & Deal Flow

+++Corrects typo in next week's HY volume estimates: $2-7bn (not $0-7bn)+++

It was a slow but not an entirely quiet end for the US high yield primary market with one deal from the calendar priced today, making it the fourth consecutive Friday when a deal has priced in US. 

Priced today in the US high yield new issue market was Integra LifeSciences Holdings Corp $450m (down from $500m) 7yNC3 sr sec notes, priced 9.50% at 100 (vs price talk of 9.50% the number and IPT of 9.25%-9.50%).

The European high yield new issue market was also active today with one deal added to the calendar for next week - Circet Oversight SAS EUR500m 7yNC3 sr sec notes, roadshow on Monday-Tuesday next week. 

Also added to the European high yield forward calendar today was ConitTech EUR400m minimum sr sec notes. Expect B1/B/BB- (stable/stable/stable). The term loan portion of the LBO debt financing launched in Europe this morning. The total deal size is EUR2.35bn equivalent, along with EUR500m minimum and US$750m minimum sr sec term loan B via Barc + others (lender call 2pm UKT/9am NYT 13-Oct; commitments due EUR 12pm UKT 21-Oct; US$ 5pm NYT 20-Oct). The proceeds will be used to fund the acquisition of ContiTech from Continental AG by Lone Star Funds for EUR4bn and fund cash to the B/S. Biz: leading pure-play producer of engineered rubber and thermoplastic products for industrial end markets worldwide. HQ: Hanover, Germany. (Acquisition announced 06-July-2026).

Heading into this week, syndicate desks expected  a slow week in the US high yield new issue market. But just how slow was hard to judge. One thing was certain, there would not be a jumbo deal this week pumping up the volume like the last couple of weeks. There was a good pipeline of opportunistic issuers, but they were unlikely to pull the trigger with rates near their 20 year highs. There were some data center deals that had been on the shadow calendar for a while but it didn’t seem likely that they would pull the trigger either. 

There was nothing officially announced on the calendar for this week, but two issuers that were out in the loan market were expected to do bond financing as well - HB Fuller Co (FUL) US$950m sr notes and Integra Lifesciences Holding Corp (IART) $500m sr sec notes. 

Syndicate desk estimates for this week’s US high yield new issue volume ranged from $2bn to $8bn, skewed to the low end of the range (call it centered around $4bn). Our guess was $4bn. 

Ultimately, as many expected, including us, the US high yield primary market slowed down with only five deals (five tranches) priced for $3.83bn. The weak secondary backdrop and absence of jumbo deals kept the deal flow limited and volume lower. This week’s largest deal was $1bn Apex Service and the rest were mid-sized. The deal flow was back-end loaded as all five deals priced Wednesday-Friday. 

The final global high yield volume for the week is 6 deals (7 tranches) for USD5.05bn equivalent, consisting of 5 US$ deals (5 tranches) for $3.83bn and 2 non-US$ deals (2 tranches) for USD $1.175bn equivalent (EUR1.05bn). October month-to-date global volume is USD6.592bn (USD4.63bn and non-US$ USD1.962bn); The YTD global volume is USD352.608bn equivalent (USD263.197bn and non-US$ USD89.411bn equivalent).

At $4.63bn, October is making slow but steady progress towards the month’s syndicate desk estimates. Still it is only one-third of the way towards the low end of October estimates, which ranged from $12.5bn to $25bn (almost equally distributed in that range). Our guess was $20bn.

A little over half of this week’s volume was single-B rated (59%), and the rest was double-B rated (41%). In terms of tenor, most volume was mid-ranged 6-7 year maturities (57%). The rest was almost equally split between 8-9 year (22%) and 4-5 year (21%) maturities. 

Most of this week’s proceeds from US high yield new issues were used for repaying debt (57%), and the rest were used for M&A (43%). Among this week’s new issues, Live Nation stood out as a USD/EUR dual-currency deal. 

Looking ahead to next week, the US high yield primary market is expected to remain slow. The week will be starting with the Columbus Day market holiday on Monday (bond market and banks closed; stock exchanges open) and the economic calendar is busy as well. Rates are already at decade highs, and there is CPI on Wednesday and PPI on Thursday which could bring more volatility.  However, there are some issuers already looking to come to the market, especially energy names, but those are very few. Almost all desks that responded, expect a very light deal flow next week, except one desk. 

Syndicate desk estimates for next week’s US high yield new issue volume ranges $2bn-$7bn (mostly centered around $2bn-$5bn range). Our guess is $5bn. 

Heading into this week in the European high yield new issue market it was hard to judge what the deal flow would be, but everyone agreed it would be on the lighter side (unlike the last two weeks, there were no expectations for a record week this week). There was still a good backlog of deals in the pipeline, and some thought there would be a few deals in the market this week, but others thought issuers would need to see a more stable or even improving market early in the week before the new issue activity resumed. There were some M&A deals that had done some premarketing that were looking to go during the October, but the double-B refinancing issuer was likely to wait for a better market. Given Friday's improvement in the secondary, a better market this week was seen as a possibility. At the close of last week, there was nothing on the calendar for this week.

We thought there might be some stability this week allowing a few well known or already premarketed credits to tap that window. Our guess for this week’s European high yield new issue deal flow was three deals for around EUR1.25bn. 

Ultimately, as expected it was a quiet week in the European high yield new issue market. Some stability in the early part of the week allowed a couple of deals to tap the market, but when the volatility returned the deals stopped. The final volume for the week was two deals (two tranches) for EUR1.050bn.

Looking ahead to next week, another quiet week is expected. There is still a good backlog of deals in the pipeline, and there should be a few deals in the market next week, but the market feels soft, and unless an issuer has a need, they will probably wait for a better market. So we could see some M&A deals that have done some premarketing, but the double-B refinancing issuer is likely to wait for a better market. Currently there is one deal on the calendar for next week. Circet Oversight SAS EUR500m 7yNC3 sr sec notes, roadshow on Monday-Tuesday, raising loans and bonds for its Management-ICG partnership recap. ContiTech will also kick off the loan portion of its LBO financing next week with EUR400m minimum sr sec notes to follow on the week after next.

We think that similar to this week there will be a few deals in the market next week. Our guess for next week’s European high yield new issue deal flow is three deals for around EUR1.50bn. 

The US high yield secondary market was very quiet today. As we go to press, UST yields inched higher (10y UST yield +1bp to 5.24%), while stocks rallied (DJIA +500; S&P +51; NASDAQ +187). The US high yield cash market was flat to up an 1/8 of a point on very light flows. 

The CDX HY46 was up almost 3/16 of a point to 106.799.

All of this week’s US new issues performed extremely well in the secondary market after pricing. The best performers were today’s new issue Integra and Distribution Solutions, both of which were up 2 points since pricing. The rest were up 1 3/8 - 1 3/4 points. 

This week’s European new issues also outperformed in the secondary market since pricing. Live Nation’s European tranche was up 1 5/8 points, while Betclic was up 1 1/8 points. 

High yield new issue priced today:

10/09/2026 Integra LifeSciences Holdings Corp (IART) $450m (down from $500m) 144A/Reg S sr sec notes due 11/01/33 (7y). NC3 (11/01/29) (MWC T+50), then at 104.75 11/01/29, 102.375 11/01/30, 100 11/01/31. Equity claw: 3y 40% at 109.5. B2/B (stable/stable). Via JPM/BofA/Citi/Citizens/DNB/PNC/TSI/CapOne/ GS/MS/MUFG/WFS/BMO/Hunt/Sant jt books, Synovus/Scotia as co-managers. No reg rights. Canadian sales: Alberta, BC, Ontario & Quebec. CoC at 101. Denoms 2kx1k. Pays May 1 and November 1, starting 05/01/27. Settles 10/19 (T+5). 144A CUSIP: 457985AN9. 144A ISIN: US457985AN95. IPT: 9.25%-9.50%. Price talk: 9.50% the number. $50m notes downsize, and $150m TLB downsize, shifted to $100m increase in the TLA and $100m increase in the revolver draw. Launched: $450m at 9.50%.

Priced: 9.50% at 100. +435bp vs 5% due 09/30/33.

Did investor call at 10am 10/07. Books closed at 11:30am 10/09. (TLB lender call 10/02, loan commitments were due at 11:30am (from 12pm) 10/09). UOP: along with $282m (up from $182m) drawn on its new $500m revolver, $150m A/R securitization (undrawn), $600m (up from $500m) term loan A; and $450m (down from $600m) term loan B via BofA/JPM + others, to refinance its debt capital structure (repaying its existing $707m term loan A and the $1.075bn drawn on its revolver). Biz: Integra operates as a specialized developer and manufacturer of medical devices and regenerative implants, serving complex surgical and wound care markets globally. HQ: Princeton, NJ.

DealRoadshow direct link: https://dealroadshow.finsight.com/e/IARTBOND2026. Entry code: IARTBOND2026. Available now.

CFR High Yield Forward Calendar

===================== [ 10/12/2026 Week ] ===============

Circet Oversight SAS (Circet) EUR500m 144A/Reg S sr sec notes NC3. B1/B+. Via BNP (B&D)/DB jt glocos and physical books/BofA/CA/JPM/NTX/NOM jt glocos/Citi/GS/HSBC/MUFG/NatWest/RBC/SocGen jt books. List TISE. NY law. CoC at 101. Denoms: 100kx1k. Settles T+10. Investor call (GIC) at 10:30am UKT / 11:30am CEST 10/12 (also did fixed income investor meetings 10/12-10/13). UOP: Proceeds, alongside EUR and USD TLBs (total deal size EUR3bn equivalent, including the sr sec notes), will be used to (i) repay existing debt in connection with the renewed partnership, (ii) pre-fund M&A, and (iii) pay fees and expenses. Biz: Global leader in telecom and energy network infrastructure services across Europe and the United States.

NetRoadshow registration link: https://www.netroadshow.com/nrs/home/#!/?show=67319314 Access Code: circet2026.

GIC registration link: https://www.netroadshow.com/events/login/1PeTHmohQuJCFOVAh4cubvZuZAEJrcolCTZkG.

====================== [ October ] ===============

ConitTech EUR400m minimum sr sec notes. Expect B1/B/BB- (stable/stable/stable). Oct biz (lender call 2pm UKT/9am NYT 13-Oct; commitments due EUR 12pm UKT 21-Oct; US$ 5pm NYT 20-Oct). UOP: total deal size EUR2.35bn equivalent, along with EUR500m minimum and US$750m minimum sr sec term loan B via Barc + others, to fund the acquisition of ContiTech from Continental AG by Lone Star Funds for EUR4bn and fund cash to the B/S. Biz: leading pure-play producer of engineered rubber and thermoplastic products for industrial end markets worldwide. HQ: Hanover, Germany. (Acquisition announced 06-July-2026).

====================== [ 2026 / 2027 ] ===============

The Brink's Co (BCO) $2.124bn sr notes. Via MS. (Existing sr unsec notes were affirmed at Ba3/BB/BB+ (stable/stable/stable)). UOP: along with cash on hand, to fund the acquisition of NCR Atleos Corp (NATL) for $6.6bn implied value, consisting of $2.2m in cash ($30.00 per share in cash) and 13.3m BCO cmn shares (0.1574 cmn share of BCO per NATL share) ($50.40 per share total implied value), and the assumption of $2.6bn NATL debt. MS has provided a $2.124n bridge loan to fund the cash portion and refinance NATL's debt (BCO will also use cash on hand) (The bridge loan originally was $4.5bn total size consisting of $2.276bn sr unsec bridge loan to fund the cash portion of the acquisition, $873m sr sec bridge loan backstopping the amend and extend of NCR Atleos term loan A with BofA, and $1.35bn sr sec bridge loan backstopping the $1.35bn 9.50% sr sec notes due 2029, in case Brink's and NCR Atleos do not receive the requisite consents from the noteholders to keep the bond outstanding). Closing is expected in Q1 2027. Biz: provider of cash management, secure logistics and security services. HQ: Richmond, VA. (Acquisition announced 02/26/2026).

++++09/11/2026 update: The UK Competition and Markets Authority initiated its first-phase inquiry into the acquisition.

++++06/30/26 update: BCO and NATL shareholders approve the merger.

++++05/12/26 update: the FTC granted early termination of the HSR waiting period.

+++04/07/26 update: on 03/31/36 Brink's increased its existing $2.225bn term loan A with a new $1.025bn delayed-draw term loan via BofA and increased its revolver by $600m. This financing will replace a portion of the bridge loan.

+++03/11/26 update: NCR Atleos announced they had received the requisite consents and amended the CoC definition on its 9.50% sr sec notes due 2029.

+++03/05/26 update: NCR Atleos Corp commenced a consent solicitation with respect to its $1.35bn 9.50% sr sec notes due 2029. The Proposed Amendments seek to amend the defined term “Change of Control” to provide that the Mergers will not constitute a Change of Control and to add or amend certain other defined terms contained in the Indenture related to the foregoing.

The amended and restated credit agreement increases the size of the existing credit facility from $2.225 billion to $3.85 billion. The increase is structured as a $1.025 billion delayed draw term loan and a $600 million increased revolving credit commitment, and the proceeds are intended to be used to fund part of the cash consideration for Brink’s potential acquisition of NCR Atleos Corporation (“NCR Atleos”), refinance indebtedness of NCR Atleos, and fund general corporate purposes. The amended and restated credit agreement will mature on March 31, 2031. Pricing is expected to remain at Term SOFR + 150 basis points through the consummation of Brink’s proposed acquisition of NCR Atleos, subject to Brink’s consolidated net leverage ratio in accordance with the terms of the amended and restated credit agreement. The acquisition remains subject to customary closing conditions, including regulatory approval and shareholder approvals from both companies.

Fertitta Gaming/Caesars Entertainment Inc (FRTITA) $1.675bn sr sec notes. UOP: along with $500m sr sec incremental term loan A-1, $1.675bn sr sec incremental term loan B-2, and $750m 1y sr sec bridge loan (also $2bn revolver), to fund the acquisition of Caesars Entertainment Inc (CZR) by Fertitta Entertainment Inc for $31.00 per share in cash representing an equity value of $5.7bn or an enterprise value of $17.6bn including the assumption of approx $11.9bn net debt. Fertitta plans on funding the transaction with $2.7bn equity financing provided by Fertitta Entertainment and committed debt financing obtained from 10 banks. MS/GS are financial advisors to Fertitta. The new entity will be a wholly owned sub of Fertitta Gaming Holdco LLC. Biz: gaming, entertainment, and restaurants. HQ: Houston, TX. (Acquisition announced 05/28/2026).

Rocket Lab Corp (RKLB) US$ TBD notes. UOP: to fund the acquisition of Iridium Communications Inc (IRDM) for $54 per share ($27.00 in cash and the rest in RLKB shares) for a total enterprise value of approx $8bn. DB/WFS have committed to provide a $3.6bn 1 year bridge loan to backstop the financing of the deal, which is expected to consist of debt and equity financing and cash on hand. Biz: a leading space company that provides launch services, spacecraft, payloads and satellite components serving commercial, government, and national security markets. HQ: Long Beach, CA. (Acquisition announced 06/29/26).

+++08/13/26 update: HSR period has lapsed. RKLB and IRDM are seeking to amend IRDM's $1.75bn term loan, which would allow it to remain in place. This would reduce the bridge loan. RKLB also announced a new $1.944bn at-the-market equity program. Amounts raised there will also reduce the commitments under the bridge loan.

Dream Finders Homes Inc (DFH) up to $900m sr notes. B1/BB-//BB- (review for downgrade/Watch negative/negative). Via BofA/GS. UOP: along with a $800m Land Bank Facility with Lewis Investment Management, $450m of $1,000 pfd equity and possibly other common equity, to fund the acquisition of Beazer Homes USA Inc (BZH) for $33.50 per share in cash or a total enterprise value of $2.2bn. BofA/GS are providing a $900m bridge loan to backstop the permanent sr note and possible common equity financing. Closing is expected in Q4 2026. Biz: single-family homebuilder. HQ: Jacksonville, FL. (Acquisition announced 08/07/26). 

++++09/09/2026 update: Dream Finders announces that it is soliciting consents from Beazer Homes bondholders to amend the indenture to eliminate the CoC provision for this acquisition.

Curium US Holdings LLC possible bonds. UOP: along with new equity financing, to fund the acquisition of Lantheus Holdings Inc (LNTH) for $102.50 per share in cash, plus another potential CVR of $12 per share or potential total consideration of approx $12bn. Jefferies is lead financial advisor to Curium, along with JPM and PTT PartnersClosing is expected in Q2 2027. Equity sponsor: CapVest Partners.  Biz: a leading global radiopharmaceutical company. HQ: Bedford, MA. (Acquisition announced 08/03/2026).

Solstice Advanced Materials Inc (SOL, SOLADV) $ TBD notes. (existing sr unsec Ba2/BB+/ BB+ (stable/Watch negative/Watch negative)). Via GS. UOP: along with cash on hand, to fund the acquisition of Element Solutions Inc (ESI) for $50.10 per share in a cash and stock transaction for a total valuation of $14.5bn including the assumption of net debt. Element shareholders will own around 44% of the combined company. The transaction consists of $10.00 per share in cash and 0.500 in Solstice shares per ESI share. Solstice obtained a $4.7bn bridge facility via GS to help fund the cash portion of the transaction. Closing is expected in H1 2027.  Biz: is a global, differentiated advanced materials company and a leading global provider of refrigerants, semiconductor materials, protective fibers and healthcare packaging. HQ: Morris Plains, NJ.  (Acquisition announced 07/06/2026).

Nuvei Corp US$750m sr sec notes. UOP: along with $1.5bn sr sec term loan, to fund the acquisition of Payoneer (PAYO) for US$7.40 per share in cash or a total equity value of approx $2.75bn. BMO/RBC/Barc/UBS/WFS are providing $2.7bn committed financing for the transaction (including $200m cash flow bridge loan and $250m incremental revolver). Closing is expected mid 2027. Biz: develops electronic payment infrastructure. HQ: Montreal, QC. (Acquisition announced 06/15/26).

Dana Inc (DAN) $ TBD notes. UOP: fund the Reverse Morris Trust merger with Eaton's mobility business with an enterprise value of $5.1bn (the combined company will have an enterprise value of over $10bn). Dana will pay a $1.1bn distribution to Eaton. Eaton shareholders will own at least 50.1% and Dana shareholders will own approximately 49.9% of the combined company at closing. GS has committed to provide a $2.6bn bridge loan backstop the $1.1bn distribution and repay certain existing Dana debt. The permanent financing is expected to include term loans and sr notes. Closing is expected in Q1 of 2027. (Acquisition announced 06/11/26).

Veris Residential Inc (VRE) $2.08bn notes. UOP: repay the $2.08bn bridge loan incurred to fund the acquisition of Veris for $19.00 per share in cash ($3.4bn enterprise value) by Affinius Capital and Vista Hill Partners, which contributed $1.07bn in cash equity. GS/UBS provided the $2.08bn bridge loan. Biz: a REIT that primarily owns, operates, acquires and develops premier Class A multifamily properties in the Northeast US. HQ: Jersey City, NJ. (Acquisition announced 02/23/26. Closed 05/27/26).

Hapag-Lloyd AG (HPLGR) up to US$2.5bn notes. Existing sr unsec Ba1/BB+. UOP: along with cash on hand, to fund the acquisition of ZIM Integrated Shipping Services Ltd for US$35.00 per share in cash or approx US$4.2bn total consideration. Closing is expected by the end of 2026. Biz: leading liner shipping company. HQ: Hamburg, Germany. (Acquisition announced 02/16/26). 

++++08/10/26 update: the Israeli government meeting to review the sale of ZIM has been postponed to 09/09/26 with the majority currently expected to oppose the sale.

Option Care Health Inc (OPCH) possible notes. UOP: fund the acquisition of Option Care Health (B2/B) by McKesson Corp (MCK) (A3/BBB+/A-) and CD&R for $32.05 per share in cash representing an enterprise value of $5.8bn. Option Care Health will remain a separate company, led by its own management. CD&R will hold a majority interest of approximately 51% in Option Care Health and McKesson will invest approximately $1.4 billion for a minority interest of approximately 49%. The  transaction also establishes a framework for McKesson’s future acquisition of CD&R’s interest in Option Care Health, subject to specified conditions and regulatory approvals. Following the closing of the transaction, McKesson intends to account for its minority interest in Option Care Health using the  equity method of accounting, recording its share of Option Care Health’s net  income or loss in Other Income, net. The parties have obtained an equity commitment letter of $2.873bn ($1.4bn from McKesson and $1.475 from CD&R) and a debt commitment letter of up to $3.15bn from BofA/Barc/GS/Jefferies/WFS, as well as up to $500m in revolving commitments to help fund the purchase price. Closing is expected in H1 2026. Biz: is the nation’s largest independent provider of home and  alternate site infusion services. HQ: Bannockburn, IL (Acquisition announced 10/06/2026).

The Boots Group possible notes. UOP: fund Wittington Investments Ltd (the investment holding company of the Weston Family) acquisition of a 50% interest (with operational control) in Boots (retail operations in the UK and Ireland, and a pharmaceutical whole business in Germany) from Sycamore Partners and the Pessina family for $8.9bn total purchase price including assumed debt. Fairfax Financial will partner with Wittington and buy a 50% equity stake for $2.3bn. CIBC and MS are providing the acquisition debt financing to Wittington. Closing is expected in Q1 2026. Biz: a pharmacy-led health and beauty retail business in the UK and Ireland, with a pharmaceutical wholesale business in Germany. HQ: London, UK. 

Crescent Energy Co (CRGY, CRGYFN) possible notes. UOP: fund the acquisition of Eagle Ford assets from Devon Energy Corp (DVN) for $4.22bn in cash ($3.85bn net of certain items). The deal will be funded with cash on hand, a $1bn public offering of common stock, which is priced 10/08/26, and new debt. JPM/RBC have provided a $2bn bridge loan to backstop the deal. (Crescent Energy Finance's existing sr unsec notes are rated B1/BB-/BB-). Closing is expected in Q4 or early 2027. Biz: oil and gas E&P. HQ: Houston, TX. In its press release CRGY said, the deal maintains a strong balance sheet and progress toward investment grade ratings. A balanced financing structure, greater scale and strong free cash flow generation support debt reduction and continued progress toward an investment-grade credit profile.