12 Months Of High-Yield Bond Reviews From Durig Capital - The Recap

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Includes: ACW, BOE, BRS, BTG, CLMT, CRC, CRZO, CWXZF, CYSTQ, DGPIF, DLNG, EDN, ESV, FGP, HL, HLF, IBIBF, ICON, KEM, LGCY, MEMP, MMLP, NRP, NXEO, OAS, PGH, PHII, RCII, TGA, TPRFF
by: Randy Durig

Summary

42 debt recommendations were made, with average Yield to Maturity (or YTW) indications* of 17.15%.

The average indicated price gain in principle if investing in all bonds equally is currently over 9% (please see the table at the end of the article.).

The additional accrued interest that is earned with the issuer’s coupon rate is not included or calculated is the currently indicated 9% gain in principle.

The Year-In-Review: July 1, 2015 to June 30, 2016

Click to enlarge

Here is the overall summary of the 42 bond reviews and recommendations (from 35 different issuers) that were sent to our clients over the past twelve months, between July 1, 2015 and June 30, 2016. Listed further below are the recommendations that Durig Capital clients subsequently acquired, the yield indications and price they were acquired at, as well as their currently indicated value relative to par. Bond reviews are published on Seeking Alpha and on Bond-Yields.com. The summary table at the end of this review does not reflect any future fluctuations in bond valuations, nor does it include the gains or losses that have or might ultimately result from exchange rate currency changes from purchase to redemption. However, it does offer a reasonably quick snapshot of how our recommendations have been faring since adjusting our selection criteria midway through last year to bond market conditions and its ensuing volatility.

Fourteen of these recommendations (from 10 different foreign corporations) were global corporate debt instruments issued in US dollars (aka, Yankee Bonds), and seven recommendations (from 6 different issuers) were debt instruments denominated in Canadian dollars. Each summary that follows lists the issuer, coupon rate, maturity, credit rating, the yields at the time of recommendation, the acquisition price, the current value indication (as a percentage of par), as well as a brief update of the issuer.

  • 35 US dollar debt recommendations, with average YTW indications* of 16.38%, were made for FX1.

  • 42 mixed currency (US and Canadian dollar) debt recommendations, with average YTW indications* of 17.15%, were made for FX2.

  • 7 foreign currency (Canadian dollar) debt additions, with average YTW indications* of 21.02%, were made for FX3.

At the time of recommendation, these debt instruments had an average outstanding maturity of less than 44 months (3.65 years) at an overall indicated average price discount of about 82.63%, and an average coupon rate of over 6.91%. The average time remaining until maturity for these bonds is currently less than 33 months (or 2.7 years.)

  • The current average price gain in principle if investing in all bonds equally is over 9%, please see the table below.

Not included or calculated is the additional accrued interest that is earned with the issuer's coupon rate. As of today, three of the recommendations were not (or haven't yet been) acquired, and are therefore not included in the average price gain.

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*Yield indications at the time of recommendations for addition to individual portfolios and currently indicated values are not presented as overall or year to date performance averages. As a result of our institutional association, we may obtain better or differing yield/price executions for our clients than is initially indicated in our reports.

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31.09% Legacy Reserves

Issuer: Legacy Reserves (NASDAQ:LGCY)
Bond Coupon: 8.0%
Maturity: 12/01/2020
Rating: Ca/CCC+
Pays: Semi-annually
Price: 46.25
Yield to Maturity: ~31.09%
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Date of Review: 6/07/16
Currently Priced at: 42.0

Legacy Reserves recently signed a joint development agreement which should help minimize capital expenditure requirements to add oil and gas production. Recently increased prices for natural gas will also add significantly to its current cash flow. More on Legacy Reserves.

12.05% Bristow Group's Yankee Bond

Issuer: Bristow Group (NYSE:BRS)
Bond Coupon: 6.25%
Maturity: 10/15/2022
Rating: B1/B+
Pays: Semi-annually
Price: 74.75
Yield to Maturity: ~12.05%
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Date of Review: 6/02/16
Currently Priced at: 75.5

Bristow has been effectively navigating the downturn in oil prices since mid-2014, and after integrating other diverse revenue sources, nearly a third of the company's revenues are now derived from non oil and gas revenue sources. More on Bristow Group.

22.4% California Resources Corporation

Issuer: California Resources Corporation (NYSEMKT:CRC)
Bond Coupon: 5.0%
Maturity: 01/15/2020
Rating: Caa3/CCC+
Pays: Semi-annually
Price: 58.4
Yield to Maturity: ~22.4%
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Date of Review: 5/23/16
Currently Priced at: 52.25

California Resources Corporation announced that at the close of business on May 31, 2016, it effected a 1-for-10 reverse stock split. Each 10 shares of the Company's common stock outstanding were combined into 1 share of common stock. More on California Resources Corporation.

13.98% Kemet Corporation's Yankee Bond

Issuer: KEMET Corporation (NYSE:KEM)
Coupon: 10.5%
Ratings: Caa1/B-
Maturity: 5/01/2018
Pays: Semi-annually
Price: 94.25
Yield to Maturity: ~13.98%
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Date of Review: 5/17/16
Currently Priced at: 95.0

Kemet recently expanded its component offerings by adding high quality ferrite inductors. Ferrite inductors are a natural complement to KEMET's capacitor core competency. Capacitors and inductors work together in various parts of electronic circuits. They can be used in electronic filters and in power distribution networks, which can be found in nearly all classes of electronic systems. These leaded devices are widely used throughout industrial and consumer applications such as LED lighting, smart meters, home appliances, smoke detectors and alarm systems. More on Kemet Corporation.

30% Memorial Production Partners

Issuer: Memorial Production Partners LP (NASDAQ:MEMP)
Bond Coupon: 7.625%
Maturity: 5/01/2021
Rating: Caa3 / CCC
Pays: Semi-annually
Price: 45.0
Yield to Maturity: ~29.37%
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Date of Review: 5/10/16
Currently Priced at: 52.0

In late April, Memorial Production Partners announced that it entered into an agreement to acquire its general partner, Memorial Production Partners GP (MEMP GP) from Memorial Resource Development Corporation. MEMP GP is the general partner of MEMP and holds the general partner interest and 50% of the incentive distribution rights (IDRs) in MEMP. As part of the transaction, MEMP will also acquire the other 50% of the IDRs held by Natural Gas Partners. Following the completion of the transaction, MEMP will be fully separated from MRD and will operate as an independent entity. This move simplifies the corporate and organizational structure and allows MEMP to control its own general partner. More on Memorial Production Partners.

25.75% Gran Colombia Gold's Yankee Bond

Issuer: Gran Colombia Gold, Inc. (OTCPK:TPRFF)
Ticker: GCM.TO (TSX)
Stock Price: $0.095 CAD (04/28/2016)
Conversion Option Price: $0.13 USD (currently ~$0.169 CAD)
Coupon: 1% Cash / 2% PIK rate
Maturity: 08/11/2018
Ratings: NA
Pays: Monthly
Price: 58.29
Yield to Maturity: ~25.75%
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Date of Review: 4/28/16
Currently Priced at: 68.0

Gran Colombia Gold met its production expectations for the first quarter of 2016, producing 31,489 ounces of gold, up 4.8% from the fourth quarter of 2015 and up 31.4% from the first

quarter a year ago. The company remains on track with its production guidance for 2016 of a total of 120,000 to 138,000 ounces for the year. More on Gran Colombia Gold.

12.15% IBI Group (in Canadian dollars)

Issuer: IBI Group Inc. (OTCPK:IBIBF)
Ticker: IBG (TSX Exchange) / Stock Price: $3.90 (NYSEARCA:CAD)
Bond Coupon: 6.00%
Conversion Option Price: $21.00 CAD
Ratings: NA
Maturity: 6/30/2018
Pays: Semi-annually
Price: 88.55
Yield to Maturity: ~12.17%
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Date of Review: 4/21/16
Currently Priced at: 94.25

For the quarter ended March 31, 2016, IBI Group reported adjusted EBITDA of $9.231 M (CAD) as compared to $6.546 M for the same period in 2015, an increase of 41%. More on IBI Group.

16.52% Iconix Brand Group

Issuer: Iconix Brand Group, Inc. (NASDAQ:ICON)
Stock Price: 8.46
Conversion Price: 30.86/share
Coupon: 1.5%
Ratings: NA
Maturity: 03/15/2018
Pays: Semi-Annually
Price: 76.35
Yield to Maturity: ~16.52%
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Date of Review: 4/15/16
Currently Priced at: 80.88

Iconix had fantastic year-over-year free cash flow growth for its quarter ended March 31, 2016. Free cash flow grew from $31.652 million in Q1 2015 to $51.648 million in Q1 2016. This represents an outstanding increase of 63%. More on Iconix Brand Group.

30% Natural Resource Partners

Issuer: Natural Resource Partners LP (NYSE:NRP)
Coupon: 9.125%
Maturity: 10/01/201
Ratings: Caa2 / B
Pays: Semiannually
Price: 66.25
Yield to Maturity: ~29.42%
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Date of Review: 4/08/16
Currently Priced at: 75.5

NRP's first quarter results showed an impressive 34% increase in net income over the same period in 2015. Net income grew from $17.489 million in Q1 2015 to $23.427 million in Q1 2016. More on Natural Resource Partners.

16.78% Data Group (in Canadian dollars)

Issuer: Data Group Inc. (OTCPK:DGPIF)
TSX Stock Price: 0.025 (CAD) 3/30/16
Bond Coupon: 6.00%
Conversion Option Price: (too high to be a significant benefit or factor to bondholders)
Ratings: NA
Maturity: 6/30/2017
Pays: Semi-annually
Price: 88.6
Yield to Maturity: ~16.78%
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Date of Review: 3/30/16
Currently Priced at: 95.0

Data Group (now Data Communications Management) had a solid first quarter for 2016. The company registered adjusted net income of $2.1 million, an increase of 442.5% year over year. Data Communication Management recorded Adjusted EBITDA of $5.7 million, an increase of 61.6% year over year. More on Data Group.

14.32% Dynagas LNG Partners Yankee Bond

Issuer: Dynagas LNG Partners LP (NYSE:DLNG)
Coupon: 6.25%
Maturity: 10/30/2019
Ratings: -/-
Pays: Quarterly
Price: 77.875
Yield to Maturity: ~14.32%
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Date of Review: 3/23/16
Currently Priced at: 89.0

In its Q1 2016 results, Dynagas registered a 25.3% increase in Adjusted EBITDA as compared to the same period in 2015. In addition, the company secured new long-term charters for three of the Partnership's modern ice-class LNG carriers. More on Dynagas LNG Partners.

17.7% Pengrowth Energy (in Canadian dollars)

Issuer: Pengrowth Energy (NYSE:PGH)
TSX Stock Price: 1.27 (CAD)
Conversion Price: 11.51 / share (CAD)
Coupon: 6.25%
Ratings: NA
Maturity: 03/31/2017
Pays: Semi-Annually
Price: 90.065
Yield to Maturity: ~17.7%
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Date of Review: 3/15/16
Currently Priced at: 95.82

Pengrowth Energy continues to reduce its outstanding debt. In Q1 2016, the company reduced total debt by approximately $173 million, to $1.68 billion from $1.86 billion at December 31, 2015. More on Pengrowth Energy.

17.39% Transglobe Energy (in Canadian dollars)

Issuer: Transglobe Energy Corporation (NASDAQ:TGA)
TSX Stock Price: 2.27 (in CAD)
Bond Coupon: 6.00%
Conversion Option Price: $15.10 CADRatings: NA
Maturity: 3/31/2017
Pays: Semi-annually
Price: 89.55
Yield to Maturity: ~17.39%
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Date of Review: 3/08/16
Currently Priced at: 94.26

Transglobe Energy is preparing a production recovery plan to reinstate curtailed/shut-in production and development projects which were delayed due to low oil prices. The production recovery plan is targeting the fourth quarter of 2016, when oil prices are anticipated to strengthen. More on Transglobe Energy.

30.99% Gran Colombia Gold's Yankee Bond

Issuer: Gran Colombia Gold, Inc.
Ticker: GCM.TO (TSX)
Stock Price: $0.095 CAD (04/28/2016)
Conversion Option Price: $0.13 USD (currently ~$0.169 CAD)
Coupon: 1% Cash / 2% PIK rate
Maturity: 08/11/2018
Ratings: NA
Pays: Monthly
Price: 49.05
Yield to Maturity: ~30.99%
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Date of Review: 2/24/16
Currently Priced at: 68.0

Gran Colombia Gold met its production expectations for the first quarter of 2016, producing 31,489 ounces of gold, up 4.8% from the fourth quarter of 2015 and up 31.4% from the first quarter a year ago. The company remains on track with its production guidance for 2016 of a total of 120,000 to 138,000 ounces for the year. More on Gran Colombia Gold.

34.36% Camposol's Yankee Bond

Issuer: Camposol S.A.
Coupon: 9.875%
Ratings: Caa1/B-
Maturity: 02/02/2017
Pays: Semi-Annual
Price: 81.25
Yield to Maturity: ~34.36%
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Date of Review: 2/16/16
Currently Priced at: 92.5

Camposol had record EBITDA during Q1 2016, up 417.1% over Q1 2015 mainly due to significantly higher volumes of blueberries. The company also improved its leverage ratio, from 5.3x in Q4 2015 to 4.2x in Q1 2016. Camposol has recently exchanged nearly 3/4ths of its outstanding 2017 bonds for new, 10.5% couponed 2021 bonds. More on Camposol.

41.4% Natural Resource Partners

Issuer: Natural Resource Partners LP
Coupon: 9.125%
Maturity: 10/01/2018
Ratings: Caa2 / B
Pays: Semiannually
Price: 51.0
Yield to Maturity: ~41.4%
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Date of Review: 2/09/16
Currently Priced at: 75.5

NRP's first quarter results showed an impressive 34% increase in net income over the same period in 2015. Net income grew from $17.489 million in Q1 2015 to $23.427 million in Q1 2016. More on Natural Resource Partners.

8.15% Herbalife

Issuer: Herbalife (NYSE:HLF)
Stock Price: 47.33
Conversion Price Option: 86.28
Coupon: 2.00%
Maturity: 8/15/2019
Ratings: - /-
Pays: Semi-Annual
Price: 81.5
Yield to Maturity: ~8.19%
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Date of Review: 2/02/16
Currently Priced at: 99.06

For Q1 2016, Herbalife reported an EPS increase of 22% to $1.12 per diluted share compared to $0.92 per diluted share for the comparable prior year quarter. In addition, first quarter 2016 net sales, excluding the impact of currency, grew by 11%. More on Herbalife.

12.1% PHI Inc.

Issuer: PHI, Inc. (NASDAQ:PHII)
Coupon: 5.25%
Maturity: 3/15/2019
Rating: B2/BB-
Pays: Semi-annually
Price: 82.75
Yield to Maturity: ~12.1%
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Date of Review: 1/26/16
Currently Priced at: 92.5

Profits from PHI's Air Medical segment in Q1 2016 experienced a modest increase of 7.2% over the prior year period, increasing to $10.4 million from $9.7 million. More on PHI Inc.

33.87% Catalyst Paper's Yankee Bond

Issuer: Catalyst Paper (CYSTF)
Coupon: 11.00%
Ratings: - /-
Maturity: 10/30/2017
Pays: Semi-Annual
Price: 72.75
Yield to Maturity: ~34.87%
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Date of Review: 1/19/16
Currently Priced at: 74.0

For Q1 2016, Catalyst Paper increased adjusted EBITDA over its Q4 2015 levels, coming in $17.1 million versus 15.1 million, an increase of 13.2%. The company also increased its sales volume of coated freesheet products by 20 per cent, compared to the same quarter in the previous year. Catalyst's revolving credit facility was increased by its banking group by $25 million to $250 million. More on Catalyst Paper.

10.1% B2Gold's Yankee Bond

Issuer: B2Gold (NYSEMKT:BTG)
Stock Price: $1.02
Coupon: 3.25%
Maturity: 10/01/2018
Conversion Price: $3.93 / share
Ratings: NA
Pays: Semiannually
Price: 84.00
Yield to Maturity: ~10.1%
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Date of Review: 12/31/15
Currently Priced at: 98.19

In Q1 2016, B2Gold increased production by 10% over Q1 2015 levels. The company also reduced all-in-sustaining-costs by 20% over Q1 2015. Also, adjusted net income was $18.9 million ($0.02 per share) compared to $10.9 million ($0.01 per share) in the first quarter of 2015, an increase of 74%. More on B2Gold.

40.41% Camposol's Yankee Bond

Issuer: Camposol S.A.
Coupon: 9.875%
Ratings: Caa1/B-
Maturity: 02/02/2017
Pays: Semi-Annual
Price: 74.875
Yield to Maturity: ~40.41%
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Date of Review: 12/8/15
Currently Priced at: 92.5

Camposol had record EBITDA during Q1 2016, up 417.1% over Q1 2015 mainly due to significantly higher volumes of blueberries. The company also improved its leverage ratio, from 5.3x in Q4 2015 to 4.2x in Q1 2016. Camposol has recently exchanged nearly 3/4ths of its outstanding 2017 bonds for new, 10.5% couponed 2021 bonds. More on Camposol.

58.3% Data Group (in Canadian dollars)

Issuer: Data Group Inc.
TSX Stock Price: 0.025 (CAD) 3/30/16
Bond Coupon: 6.00%
Conversion Option Price: (too high to be a significant benefit or
factor to bondholders)
Ratings: NA
Maturity: 6/30/2017
Pays: Semi-annually
Price: 51.5
Yield to Maturity: ~58.3%
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Date of Review: 12/01/15
Currently Priced at: 95.0

Data Group (now Data Communications Management) had a solid first quarter for 2016. The company registered adjusted net income of $2.1 million, an increase of 442.5% year over year. Data Communication Management recorded Adjusted EBITDA of $5.7 million, an increase of 61.6% year over year. More on Data Group.

7.37% Ensco

Issuer: Pride International / Ensco PLC (NYSE:ESV)
Coupon: 8.5%
Maturity: 06/15/2019
Rating: Baa2 / BBB+
Pays: Semi-annually
Price: 103.45
Yield to Maturity: ~7.372%
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Date of Review: 11/24/15
Currently Priced at: 101.75

In April Ensco took further steps to improve its financial position by completing a tender offer, repurchasing $861 million of senior notes at an average discount of 28% and raising $586 million of net proceeds through a 65.6 million share offering. As a result, on a pro-forma basis as of the end of the first quarter, Ensco had $1.3 billion of cash and short-term investments, a fully available $2.25 billion revolving credit facility and a net debt-to-capital ratio of 33%. Additionally, the company also had $5.2 billion of contracted revenue backlog. More on Ensco.

8.85% Oasis Petroleum

Issuer: Oasis Petroleum Corp. (NYSE:OAS)
Coupon: 7.25%
Maturity: 02/01/2019
Rating: B2/B+
Pays: Semi-annually
Price: 95.65
Yield to Maturity: ~8.85%
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Date of Review: 11/16/15
Currently Priced at: 96.5

Oasis was free cash flow positive again in the first quarter of 2016, its fourth consecutive quarter. In addition, the company had reduced lease operating expenses (LOE) per barrel of oil equivalent (NYSE:BOE) to $6.78, a 21% decrease from the first quarter of 2015 and a 1% sequential quarter decrease. More on Oasis Petroleum.

14.09% Kemet Corporation's Yankee Bond

Issuer: KEMET Corporation
Coupon: 10.5%
Ratings: Caa1/B-
Maturity: 5/01/2018
Pays: Semi-annually
Price: 92.75
Yield to Maturity: ~14.09%
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Date of Review: 11/09/15
Currently Priced at: 95.0

Kemet recently expanded its component offerings by adding high quality ferrite inductors. Ferrite inductors are a natural complement to KEMET's capacitor core competency. Capacitors and inductors work together in various parts of electronic circuits. They can be used in electronic filters and in power distribution networks, which can be found in nearly all classes of electronic systems. These leaded devices are widely used throughout industrial and consumer applications such as LED lighting, smart meters, home appliances, smoke detectors and alarm systems. More on Kemet Corporation.

10.17% Nexeo Solutions

Issuer: NEXEO Solutions (NASDAQ:NXEO)
Coupon: 8.375%
Ratings: Caa2/CCC+
Maturity: 3/01/2018
Pays: Semi-annually
Price: 96.4
Yield to Maturity: ~10.17%
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Date of Review: 11/02/15
Currently Priced at: 100.0

Nexeo Solutions has become one of the market leaders in distribution for both chemicals and plastics, and the recent accretive acquisitions of Archway Sales and CSD have definitely proved advantageous as shown by the increases in operating income, net income and gross profit percentages. More on NEXEO Solutions.

8.06% Calumet Specialty Products

Issuer:Calumet Specialty Products Partners (NASDAQ:CLMT)
Coupon: 7.625%
Maturity: 01/15/2022
Rating: B2/B+
Pays: Semi-annually
Price: 97.9
Yield to Maturity: ~8.059%
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Date of Review: 10/28/15
Currently Priced at: 70.75

In April 2016, Calumet issued $400 million in senior secured notes, couponed at 11.5% and due 2021. The proceeds will be used to repay borrowings outstanding under its revolving credit facility, to terminate or cash collateralize certain of its existing hedging obligations and for general partnership purposes. More on Calumet Specialty Products.

10.27% Dynagas LNG Partners Yankee Bond

Issuer: Dynagas LNG Partners LP
Coupon: 6.25%
Maturity: 10/30/2019
Ratings: -/-
Pays: Quarterly
Price: 87.0
Yield to Maturity: ~10.27%
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Date of Review: 10/19/15
Currently Priced at: 89.0

In its Q1 2016 results, Dynagas registered a 25.3% increase in Adjusted EBITDA as compared to the same period in 2015. In addition, the company secured new long-term charters for three of the Partnership's modern ice-class LNG carriers. More on Dynagas LNG Partners.

13.56% Transener's Yankee Bonds

Issuer: Compania de Transporte Energia (Transener)
Coupon: 9.75%
Maturity: 8/2/2021
Ratings: CCC-
Pays: Semi-annually
Price: 85.0
Yield to Maturity: ~13.56%
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Date of Review: 10/09/15
Currently Priced at: 103.25

For its fiscal year ended December 31, 2015, Transener recorded consolidated net revenues 31.8% higher than the previous year, mainly due to an increase of 56.0% (AR$ 476.2 million) in the Renewal Agreement revenue. More on Transener.

8.8% CanWel Building Materials (in Canadian dollars)

Issuer: CanWel Building Materials Group Ltd. (OTC:CWXZF)
TSX Stock Price: 5.38 (10/8/15)
Debenture Coupon: 5.85%
Ratings: NA
Maturity: 4/30/2017
Conversion price: 12.8 (bondholder's option anytime prior to maturity)
Pays: Semi-annually
Price: 95.
Yield to Maturity: ~8.8%
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Date of Review: 10/06/15
Currently Priced at: 100.0

CanWel posted solid results in Q1 2016. The company increased revenues increased by 24% to $198 million. In addition, its EBITDA also posted an impressive increase of 253% to $5.4 million. More on CanWel Building Materials.

8.69% Carrizo Oil and Gas

Issuer: Carrizo Oil & Gas, Inc. (NASDAQ:CRZO)
Coupon: 7.5%
Maturity: 9/15/2020
Rating: B2/B
Pays: Semi-annually
Price: 95.28
Yield to Maturity: ~8.69%
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Date of Review: 9/23/15
Currently Priced at: 101.29

In the first quarter of 2016, Carrizo had record Oil Production of 25,806 barrels/day, 21% above the first quarter of 2015. Carrizo is increasing its 2016 oil production guidance to 24,800-25,300 barrels/day from 24,700-25,300 barrels/day previously. Using the midpoint of this range, the Company's 2016 oil production growth guidance is 9%. More on Carrizo Oil and Gas.

12.47% Edenor's Yankee Bond

Issuer: Empresa Distribuidora y Comercializadora Norte S.A. (NYSE:EDN)
Coupon: 9.75%
Maturity: 10/25/2022Rating: B2/B
Pays: Semi-annually
Price: 87.5
Yield to Maturity: ~12.47%
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Date of Review: 9/18/15
Currently Priced at: 104

Adjusted EBITDA increased to a gain of AR$ 647.3 million in the fourth quarter ended December 31, 2015, compared to a loss of AR$ 690.2 million in the same period of 2014. More on Edenor.

8.42% Martin Midstream Partners

Issuer: Martin Midstream Partners LP (NASDAQ:MMLP)
Coupon: 7.25%
Maturity: 2/15/2021
Rating: B3/B-
Pays: Semi-annually
Price: 95.0
Yield to Maturity: ~8.42%
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Date of Review: 9/15/15
Currently Priced at: 92.5

Despite significantly lower natural gas liquids prices, the partnership's adjusted EBITDA from continuing operations for the first quarter of 2016 was $49.3 million compared to adjusted EBITDA from continuing operations for the first quarter of 2015 of $50.4 million, a decrease of only 2%. Net income for the first quarter of 2016 was $15.9 million, or $0.33 per limited partner unit. Net income for the first quarter of 2015 was $17.2 million, or $0.37 per limited partner unit. More on Martin Midstream Partners.

8% Ferrellgas

Issuer: FerrellGas Partners LP (NYSE:FGP)
Coupon: 8.625%
Maturity: 6/15/2020
Rating: B3/B-
Pays: Semi-annually
Price: 101.5
Yield to Worst Call: ~8.0% (@100 on 6/15/2018)
Yield to Maturity: ~8.23%
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Date of Review: 9/03/15
Currently Priced at: 100.0

Ferrellgas Partners recorded Adjusted EBITDA of $138.3 million for the second quarter of fiscal 2016 ended January 31, 2016, an increase from $136.9 million in the prior year period. More on Ferrellgas Partners.

7.39% Accuride Corporation

Issuer: Accuride Corporation, Inc. (NYSE:ACW)
Coupon: 9.50%
Maturity: 8/01/2018
Rating: B3/B-
Pays: Semi-annually
Price: 101.85
Yield to Worst Call: ~7.39% (@par on 8/01/2016)
Yield to Maturity: ~8.69%
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Date of Review: 8/20/15
Currently Priced at: 92.62

In May 2016, Accuride's Brillion Iron Works business unit was awarded contracts for $6.5 million in annualized new business across a broad range of industries and applications, including the defense, industrial, municipal, automotive and commercial-vehicle sectors. Brillion also announced in May that it had secured a major long-term contract to supply transmission flywheels to the Detroit subsidiary of Daimler Trucks North America. Together with the Detroit contract, these awards help to further diversify Brillion's revenue sources and boost utilization of its foundry operations with approximately $14 million in annualized new business. More on Accuride.

7.62% Rent-A-Center

Issuer: Rent-A-Center, Inc. (NASDAQ:RCII)
Coupon: 4.75%
Maturity: 5/1/2021
Rating: B1/B+
Pays: Semi-annually
Price: 87.0
Yield to Maturity: ~7.62%
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Date of Review: 8/14/15
Currently Priced at: 83.0

For the quarter ended March 31, 2016, Rent-A-Center reduced its outstanding debt balance by $212.1 million in the quarter. The company also declared a quarterly dividend of $0.08 per share in the first quarter of 2016, which was paid April 21, 2016. More on Rent-A-Center.

7.67% NPC International

Issuer: NPC International, Inc.
Coupon: 10.50%
Maturity: 1/15/2020
Rating: Caa1/CCC
Pays: Semi-annually
Price: 106.0
Yield to Worst Call: ~7.67% (@102.62 on 1/15/2017)
Yield to Maturity: ~8.81%
---------------------------------------
Date of Review: 7/31/15
Currently Priced at: 105.25

In NPC's Q1 2016 ended March 29, 2016, the company registered adjusted EBITDA of $35.0 million; an increase of $2.7 million or 8.4% from the prior year. Adjusted EBITDA margin also improved to 11.5% from 10.9% last year. More on NPC International.

7.83% PHI Inc.

Issuer: PHI, Inc.
Coupon: 5.25%
Maturity: 3/15/2019
Rating: B2/BB-
Pays: Semi-annually
Price: 92.0
Yield to Maturity: ~7.83%
---------------------------------------
Date of Review: 7/23/15
Currently Priced at: 92.5

Profits from PHI's Air Medical segment in Q1 2016 experienced a modest increase of 7.2% over the prior year period, increasing to $10.4 million from $9.7 million. More on PHI Inc.

8.99% Hecla Mining

Issuer: Hecla Mining Company (NYSE:HL)
Coupon: 6.875%
Maturity: 5/01/2021
Rating: B3/B
Pays: Semi-annually
Price: 91.0
Yield to Maturity: ~8.99%
---------------------------------------
Date of Review: 7/08/15
Currently Priced at: 96

In its first quarter results for 2016, Hecla Mining reported a 61% increase in silver production and a 37% increase in gold production. The company also reported adjusted EBITDA of $46.5 million, a 33% increase to its highest level in three years. More on Hecla Mining.

__________________________________________________

Summary Table*

Review Date

Issuer

Coupon

Maturity Date

Acquisition Price

Yield to Mat.(or Worst)

Current Price

% Change

FX1

FX2

FX3

7-Jun-16

Legacy Reserves

8.000

12/1/2020

46.250

31.09

31.09

42.00

(9.19%)

2-Jun-16

Bristow Group

6.250

10/15/2022

74.750

12.05

12.05

75.50

1.00%

23-May-16

California Resource Corp

5.000

1/15/2020

58.400

22.40

22.40

52.25

(10.53%)

17-May-16

Kemet Corp.

10.500

5/1/2018

94.250

13.98

13.98

95.00

0.80%

10-May-16

Memorial Prod. Partners

7.625

5/1/2021

45.000

29.37

29.37

52.00

15.56%

28-Apr-16

GranColombia Gold

1.000

8/11/2018

58.290

25.75

25.75

68.00

16.66%

21-Apr-16

IBI Group

6.000

6/30/2018

88.550

12.15

12.15

94.25

6.44%

15-Apr-16

Iconix Brand Group

1.500

6/15/2018

76.350

16.52

16.52

80.88

5.93%

8-Apr-16

Natural Resource Partners

9.125

10/1/2018

66.250

29.42

29.42

75.50

13.96%

30-Mar-16

Data Group

6.000

6/30/2017

88.600

16.78

16.78

95.00

7.22%

23-Mar-16

Dynagas

6.250

10/30/2019

77.875

14.32

14.32

87.00

11.72%

15-Mar-16

Pengrowth Energy

6.250

3/31/2017

90.065

17.70

17.70

95.82

6.39%

8-Mar-16

Transglobe Energy

6.000

3/31/2017

89.550

17.39

17.39

94.26

5.26%

24-Feb-16

GranColombia Gold

1.000

8/11/2018

49.050

30.99

30.99

68.00

38.63%

16-Feb-16

Camposol

9.875

2/2/2017

81.250

34.36

34.36

92.50

13.85%

9-Feb-16

Natural Resource Partners

9.125

10/1/2018

51.000

41.40

41.10

75.50

48.04%

2-Feb-16

Herbalife

2.000

8/15/2019

81.500

8.15

8.15

99.06

21.55%

26-Jan-16

PHI Inc.

5.250

3/15/2019

82.750

12.10

12.10

92.50

11.78%

19-Jan-16

Catalyst Paper

11.000

10/30/2017

70.500

33.87

33.87

74.00

4.96%

31-Dec-15

B2Gold

3.250

10/1/2018

84.000

10.10

10.10

98.19

16.89%

8-Dec-15

Camposol

9.875

2/2/2017

74.875

40.41

40.41

92.50

23.54%

1-Dec-15

Data Group

6.000

6/30/2017

51.500

58.30

58.30

95.00

84.47%

24-Nov-15

Ensco PLC / Pride Intl

8.500

6/15/2019

103.450

7.37

7.37

101.75

(1.64%)

16-Nov-15

Oasis Petroleum 2019

7.250

2/1/2019

95.650

8.85

8.85

96.50

0.89%

9-Nov-15

Kemet Corp.

10.500

5/1/2018

92.750

14.09

14.09

95.00

2.43%

2-Nov-15

NEXEO Solutions

8.375

6/1/2018

96.400

10.17

10.17

100.00

3.73%

28-Oct-15

Calumet Specialty Prod.

7.625

1/15/2022

97.900

8.06

8.06

70.75

(27.73%)

19-Oct-15

Dynagas

6.250

10/30/2019

87.000

10.27

10.27

87.00

0.00%

9-Oct-15

Transener 2021

9.750

8/15/2021

85.000

13.56

13.56

103.25

21.47%

6-Oct-15

CanWel Building Mat.

5.850

4/30/2017

95.800

8.80

8.80

100.00

4.38%

23-Sep-15

Carrizo Oil and Gas

7.500

9/15/2020

95.280

8.69

8.69

101.29

6.31%

18-Sep-15

Edenor

9.750

10/25/2022

87.500

12.47

12.47

104.00

18.86%

15-Sep-15

Martin Midstream

7.250

2/15/2021

95.000

8.42

8.42

92.50

(2.63%)

3-Sep-15

Ferrellgas

8.625

6/15/2020

101.500

8.23

8.23

100.00

(1.48%)

20-Aug-15

Accuride

9.500

8/1/2018

101.850

7.39

7.39

92.62

(9.06%)

14-Aug-15

Rent-A-Center

4.750

5/1/2021

87.000

7.62

7.62

83.00

(4.60%)

31-Jul-15

NPC Intl

10.500

1/15/2020

106.000

7.67

7.67

105.25

(0.71%)

23-Jul-15

PHI Inc.

5.250

3/15/2019

92.000

7.83

7.83

92.50

0.54%

8-Jul-15

Hecla Mining

6.875

5/1/2021

91.000

8.99

8.99

96.00

5.49%

Averages

6.948

81.838

16.85

17.61

21.85

87.59

9.005%

Click to enlarge

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____________________________________________________________

*Yield indications at the time of recommendations for addition to individual portfolios are not presented as year to date performance averages. Also, please note that all yield and price indications are shown from the time of our research or publication, and we believe it to be accurate and transparent. Any errors and omissions that may have occurred in this report are unintentional, and we believe the pricing data and platforms used to prepare this report to be reliable and accurate, but cannot guarantee it. Our reports are never an offer to buy or sell any security. We are not a broker/dealer, and reports are intended for distribution to our clients. As a result of our institutional association, we may obtain better yield/price executions for our clients than is initially indicated in our reports. We welcome inquiries from other advisors that may also be interested in our work and the possibilities of achieving higher yields for retail clients.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.