Citrix, Brightspeed on tap; Embarq notes fall; Carvana bounces

By Paul A. Harris and Abigail W. Adams

Portland, Me., Sept. 19 – In the high-yield bond market, developments surfaced Monday on the Picard Midco, Inc./Citrix Systems Inc. megadeal.

Official yield talk on the $4 billion offering of 6.5-year senior secured notes came at 9½% to 9¾%, implying a discount range of 85.695 to 84.62.

Meanwhile marketing began for the Connect Holding II LLC $1,865,000,000 seven-year senior secured notes offer backing the carve-out acquisition of Lumen Technologies’ fixed line assets by Apollo Global Management.

The broadband and telecom services provider will be rebranded as Brightspeed. The initial talk is 10%.

Also on Monday Tellurian Inc. cited uncertain market conditions as it withdrew a $1 billion notes and warrants project financing deal from the market.

There was an uptick of activity in the secondary space as the market prepared for the megadeals in the works.

Embarq Corp.’s (Lumen Technologies Inc.) 7.995% senior notes due 2036 (Ba2/BB) sank in heavy volume on Monday after Brightspeed announced LBO financing that pushed them down the capital structure.

Carvana Co.’s 10¼% senior notes due 2030 (Caa2/CCC) saw heavy volume with the notes bouncing after hitting a new low the previous session.

Royal Caribbean Group’s 11 5/8% senior notes due 2027 (B3/B) were again afloat on Monday with the notes up about 1 point after sinking below par the previous session.

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