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GEO Group, Dye & Durham price junk bonds; Rakuten notes climb; funds lose $259.1 million
By Cristal Cody and Paul A. Harris
Tupelo, Miss., April 4 – Two issuers priced three tranches of new junk bonds on Thursday, raising a combined total of $1.83 billion.
GEO Group executed a $1.275 billion two-part placement, upsized from $1.2 billion.
The company priced $650 million of 8 5/8% five-year senior secured notes (B1/BB) and $625 million of 10¼% eight-year senior unsecured notes (B3/B).
Both priced at par and in the middle of talk.
The deal went very well, according to a trader who spotted the bonds in both tranches up 2¼ points at the Thursday close.
Also Dye & Durham Corp. priced an upsized $555 million issue (from $500 million) of five-year senior secured notes (B1/B) at par to yield 8 5/8%, at the tight end of talk.
The deal, which came into market with $1.2 billion of reverse inquiry, was playing to $2.3 billion of demand on Thursday morning, a trader said.
The primary buzz in Rakuten Group Inc.’s $2 billion upsized deal on Wednesday spread to the secondary space Thursday with the 9¾% notes due 2029 (BB) climbing over ½ point on more than $130 million of paper traded.
The dedicated high-yield bond funds sustained $259.1 million of net outflows in the week that concluded with Wednesday’s close, according to a trader who cited information from fund-tracker Refinitiv Lipper.
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