Over the past week, investors removed $1.72 billion from high yield bond mutual funds and ETFs and nearly $13 million from bank loan funds, according to Lipper.
Builders FirstSource on Friday priced an upsized $600 million term loan B and allocated a $700 milioin senior notes package, both of which are part of a $2.2 billion debt offering and equity raise intended to fund the companys acquisition of ProBuild Holdings.
For the week ended July 22, $208 million was added to loan mutual funds and exchange traded funds, and nearly $82 million was added to their high yield counterparts, according to Lipper.
Two weeks after pricing a 6-part, $15.5 billion high-yield bonds offering, Charter Communications today will be launching a $3.5 billion term loan that will also be used towards its planned mega-merger with Time Warner Cable.
Consumable brands company Jarden Corp. is planning a lenders call Monday to detail the launch of incremental debt plans to fund its recently announced $1.35 billion acquisition of disposable tableware manufacturer Waddington Group.
For the second week in a row, speculative-grade investors collectively added funds to bond and loan funds this week. The net deposits were largely driven by exchange-traded fund activity.
At 2.3%, the worldwide corporate default rate in the second quarter remained unchanged from the first quarter, and near Moody's year-ago forecast of 2.2%.
The rising tide of stressed corporate credit metrics showed no signs of stemming in the second quarter, with Standard & Poors reporting glum news about default and downgrade trends among issuers.
Tank-truck fuels delivery provider Kenan Advantage Group has set a meeting for Monday to discuss terms on $750 million term loan B that will be part of its buyout financing package.
Investors parked $45 million in junk bond exchange traded and mutual funds this week, while depositing $18.5 million in their loan counterparts, according to Lipper.
Head of US Fixed Income
Firm: AXA Investment Managers