Trivium, Trident TPI on tap; E.W. Scripps, Masonite improve; Carrizo Oil & Gas up on buyout

By Paul A. Harris and Abigail W. Adams

Portland, Me., July 15 – The forward calendar for both the domestic and European primary market grew on Monday with three new roadshows announced.

Trivium Packaging Finance BV started an international roadshow on Monday for a $2.75 billon equivalent four-part offering of notes.

In a dollars-only deal, Trident TPI Holdings, Inc., which does business as Tekni-Plex, plans to start a roadshow on Tuesday for a $345 million offering of five-year senior notes.

And France's Loxam SAS started a roadshow on Monday for a €1.4 billion three-part offering of notes.

U.K.-based Domestic & General set price talk in its £630 million three-part offering of high-yield notes with pricing expected on Tuesday.

Meanwhile, volume was relatively thin in the secondary space with the overall market largely unchanged, sources said.

E.W. Scripps Co.’s 5 7/8% senior notes due 2027 (B3/B-/B) continued their upward momentum on Monday after a strong start out of the gate.

Masonite International Corp.’s 5 3/8% senior notes due 2028 (Ba3/BB+) saw significant improvement in active trading during Monday’s session.

Carrizo Oil & Gas Inc.’s junk bonds jumped in active trading on Monday after news broke that Callon Petroleum Co. would acquire the company in an all stock deal.

Generic drug makers Endo International plc’s and Teva Pharmaceutical Industries Ltd.’s junk bonds traded off on Monday due to an analyst downgrade of both companies’ stock.

Trivium brings $2.75 billion

Much of Monday's new issue news came from Europe, or came with European facets.

Trivium Packaging Finance started an international roadshow on Monday for a $2.75 billon equivalent four-part offering of notes.

The deal features $1.25 billion equivalent of euro-denominated seven-year notes in tranches of fixed-rate notes and floating-rate notes, sizes to be determined.

In addition, the deal features $900 million of seven-year senior secured fixed-rate notes.

The sole unsecured tranche comes as $600 million of eight-year senior fixed-rate notes.

The roadshow is scheduled to wrap up on Friday.

Joint bookrunner Citigroup will bill and deliver. BMO is also a joint bookrunner.

Proceeds will be used to form Trivium Packaging, a joint venture combination of Ardagh’s metal, food and specialty business, with Ontario Teachers' Pension Plan Board’s Exal Corp., via cash consideration to Ardagh Group.

Proceeds will also be used refinance certain debt of Exal and for general corporate purposes.

Tekni-Plex

In a dollars-only deal, Trident TPI Holdings, which does business as Tekni-Plex, plans to start a roadshow on Tuesday for a $345 million offering of five-year senior notes.

Initial talk has the deal coming to yield in the 8½% area, a trader said.

Jefferies and BMO are the joint bookrunners.

The Wayne, Pa.-based packaging company plans to use the proceeds to pay off the bridge facility used to finance a portion of the acquisition of three manufacturing facilities from Amcor’s flexible packaging business unit, in addition to the acquisition of Italian health care packaging firm Lameplast SpA and Brazilian closure liner manufacturer Geraldiscos.

Proceeds will also be used for cash on the balance sheet and for general corporate purposes.

Domestic & General price talk

U.K.-based Domestic & General set price talk in its £630 million three-part offering of high yield notes.

The deal features £480 million of senior secured notes in two tranches from issuing entity Galaxy Bidco Ltd.: £230 million of seven-year fixed-rate notes talked to yield 6¼% to 6½% and £250 million of seven-year floating-rate notes talked at a 550 basis points to 575 bps spread to Libor.

In addition, Galaxy Finco Ltd. is selling £150 million of eight-year senior unsecured notes talked to yield 8¾% to 9%.

The acquisition and related debt refinancing deal, with sole physical bookrunner Barclays at the helm, is set to price Tuesday.

Loxam roadshows three-part offer

France's Loxam started a roadshow on Monday for a €1.4 billion three-part offering of notes.

The deal includes €1.15 billion of senior secured notes (BB-) in two tranches: 5.5-year notes and seven-year notes.

In addition, the Paris-based heavy equipment rental service is offering €250 million of eight-year senior subordinated notes (B).

The roadshow runs through Wednesday.

Deutsche Bank is leading the acquisition deal.

Elsewhere on Monday, Victoria plc disclosed plans to sell €330 million of five-year fixed-rate senior notes (BB-) for the purposes of refinancing debt.

E.W. Scripps at a premium

While activity surrounding E.W. Scripps’ newly priced 5 7/8% senior notes due 2027 tempered on Monday, the notes continued to see slight improvement after a strong start out of the gate.

The 5 7/8% notes traded as high as 101 7/8 during Monday’s session with the majority of prints between 101 3/8 and 101 5/8, according to a market source.

The notes saw more than $9 million in reported volume.

The notes were off to a strong start after breaking for trade on Friday. They traded in a range of par ½ to 101¾ with the final prints around 101 3/8, a source said.

E. W. Scripps priced an upsized $500 million issue of the 5 7/8% notes at par on Friday.

The issue size was increased from $400 million.

The yield printed at the tight end of yield talk in the 6% area.

Masonite trades up

Masonite’s recently priced 5 3/8% senior notes due 2028 saw marked improvement on Monday after a lackluster start in the secondary space.

The 5 3/8% notes were up about ½ point on Monday to close the day around 101, according to a market source.

The notes remained active with more than $21 million in reported volume.

The 5 3/8% notes initially struggled in the secondary space and were wrapped around par after breaking for trade on Thursday.

They traded below par at times during Friday’s session but closed the day at par ½, a source said.

Masonite priced a $500 million issue of the 5 3/8% notes at par in a drive-by on July 11.

Carrizo’s buyout

Carrizo’s junk bonds jumped in active trading on Monday after Callon Petroleum announced it would acquire the company in an all stock deal valued at $3.2 billion.

Carrizo’s 6¼% senior notes due 2023 were in focus with the notes jumping more than 3 points.

The notes rose to 98½ by the late afternoon with more than $28 million of the bonds on the tape, according to a market source.

The deal is expected to close in the fourth quarter.

Under pressure

Generic drug makers Endo International and Teva Pharmaceutical were under pressure on Monday with the stocks and bonds of the companies trading off following an analyst downgrade.

Endo’s 6% senior notes due 2023 dropped 1 point to trade down to 69½, a market source said.

Teva’s junk bonds also traded off about 1 point.

Teva’s 6¾% senior notes due 2024 traded down to close the day around 92.

More than $28 million of the bonds were on the tape by the late afternoon.

The 6.15% notes closed the day around 86, and the 3.15% senior notes due 2026 traded down 1 point to 77½, a source said.

The notes were trading down after a Morgan Stanley analyst downgraded the stock of both companies.

The downgrade was due to pricing pressure, increased competition in the generic drug space and the ongoing liability both companies face from opioid litigation.

Friday outflows

The daily cash flows of the dedicated high-yield bond funds were flat to moderately negative on Friday, the most recent session for which data was available at press time, according to a trader.

High-yield ETFs sustained $57 million of outflows on the day.

Actively managed high yield funds saw $5 million of outflows on Friday, the trader said.

Indexes mixed

Indexes opened the week mixed after all saw cumulative losses last week.

The KDP High Yield Daily index was down 1 basis point to close Monday at 71.82 with the yield now 5.41%.

The index was down 10 bps on the week last week.

The ICE BofAML US High Yield index gained 8.1 bps with the year-to-date return now 10.406%.

The index was down 3.2 bps on the week last week.

The CDX High Yield 30 index dropped 8 bps to close Monday at 107.41.

The index saw a cumulative loss of 65 bps on the week last week.

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