CBS Outdoor prices; Burger King call on the menu; new Acosta issue busy; RCN, PlyGem gain

By Paul Deckelman and Paul A. Harris

New York, Sept. 16 – The high-yield primary had only a modestly busy day on Tuesday with only one pricing, that of CBS Outdoor Americas, Inc., which priced its upsized $600 million two-part issue consisting of an add-on to its existing 2022 notes and a tranche of new 10.5-year paper.

That was off from the $1 billion of new U.S.-dollar-denominated and fully junk-rated debt that had gotten done on Monday. Traders meantime saw heavy trading in that earlier session’s big deal, Acosta Sales & Marketing Co.’s $800 million of eight-year notes, seen up slightly from their issue price.

Two smaller Monday offerings – PlyGem Industries Inc.’s tranche of mirror notes to its existing 2022 issue and RCN Telecom Services LLC’s add-on to its 2020 notes – were seen having extended the initial gains they had notched after pricing.

Last week’s three-part bond behemoth from California Resources Corp. remained among the busiest issues in Junkbondland and was seen having firmed across the board.

Away from the deals that have actually priced over the past few sessions, primaryside players were anticipating Wednesday’s scheduled launch and coming investor call for Burger King Worldwide’s $2.25 billion offering of 7.5-year notes.

In the non-new-deal secondary market, Sears Holdings Corp.’s bonds moved lower, along with its shares, on the news that the underperforming retailer has had to borrow to fund its operations.

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