Trading in high yield bonds on the secondary market slipped below year-to-date average volumes this week as the market experienced a wide selloff.
High yield bond funds saw the largest weekly outflows in more than a year with exchange-traded funds taking a large share of the money out of the asset class. Leveraged loan funds saw outflows as well.
Alliance Data Systems sold $600 million in 5.375% senior notes due 2022. Clearwater Paper issued $300 million in 5.375% senior notes due 2025. Capsugel sold $415 million in 7% PIK Toggle notes due 2019.
The conflagrations in the Middle East and Eastern Europe have certainly put investors on edge. For the last two weeks, investors have been pulling money from junk bonds at the fastest pace in almost a year. High yield bonds were probably due for a small correction after the strong performance of the first half of the year.
Alliance Data Systems is selling $500 million in senior notes due 2022. Clearwater Paper plans to issue $300 million in senior notes due 2025. Warren Resources is selling $300 million in senior notes due 2022.
CITGO Petroleum issued $650 million in 6.25% senior secured notes due 2022 as part of a larger $2.3 billion refinancing effort. The company also closed on a $650 million term loan B.
Micron Technology drove by the bond market Wednesday to price $1.15 billion in 5.5% senior notes due 2025 in a deal upsized from $750 million.
Tata Steel is on the market with a two-part benchmark bond offering that is expected to price this week. The Mumbai, India-based steel company will issue senior notes due 2024 and senior notes due 2020.
Transworld Systems priced $440 million in 9.5% senior secured notes due 2021 on Tuesdays market. The company is being spun out of Expert Global Solutions via a buyout by Platinum Equity.
Micron Technology is on the market with a $750 million bond offering. The senior notes due 2025 could price as early as today.