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Frontier Communications Was the Highest Issuer of Junk Bonds

High Yield Bond Issuance Resumes after 2-Week Lull

(Continued from Prior Part)

Pricing trends

Junk bond issuers came back to the primary market in the week ended September 11, 2015, after two weeks of no issuance. ETFs like the SPDR Barclays High Yield Bond ETF (JNK) and the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) invest in junk bonds.

Deal highlight of the week

Voice, data, and video services provider Frontier Communications (FTR) issued junk bonds worth $6.6 billion last week. This was the fifth largest issue ever. The Ba3/BB- rated three-tranche issue consisted of:

  • $1.0 billion in 8.875% senior notes due on September 15, 2020. The notes were issued at 100% of the aggregate principal amount at a yield to worst of 8.875%.
  • $2.0 billion in 10.50%...

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