Upsized Ardagh megadeal, Allegiant price to cap $5.9 billion week; First Data remains busy

By Paul Deckelman and Paul A. Harris

New York, June 20 – After a relatively slow start earlier in the week, the high-yield market picked up steam and closed out the week on Friday on a busy note, with Irish glass and metal container producer Ardagh Group bringing a greatly upsized $1.55 billion two-part issue of fixed- and floating-rate notes to market, along with a third tranche of bonds denominated in euros.

Traders said that the upsized $1.1 billion of 5.5-year floaters strengthened markedly when they hit the secondary market late in the day, while the $440 million of fixed-rate seven-year paper was modestly higher.

The day also saw low-cost airline operator Allegiant Travel Co. do a $300 million issue of five-year notes, which gained some aftermarket altitude.

The day’s $1.85 billion of new paper, all of it in regularly scheduled deals off the forward calendar, raised the week’s total issuance of new dollar-denominated, fully junk-rated bonds to just under $5.88 billion in 12 tranches, according to data compiled by Prospect News.

Away from the new deals, there was also continued action in First Data Corp.’s bonds, riding a wave of momentum following Thursday’s announcement that owner KKR and other investors will pump $3.5 billion of fresh cash into the electronic transaction processor’s corporate coffers, allowing it to chop away at its massive debt load.

© 2015 Prospect News.
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