Building Materials megadeal, Carrizo drive by; M/I Homes drops out; overall market dull

By Paul Deckelman and Paul A. Harris

New York, Oct. 27 – The high-yield primary sphere kicked off the final week in October on Monday by pricing a pair of opportunistically timed drive-by issues, but a third such quickly shopped deal was heard by syndicate sources to have bit the dust just hours after it had been announced.

The day’s big deal was construction supplies provider Building Materials Corp. of America’s $1.1 billion of 10-year notes, while its other offering was energy operator Carrizo Oil & Gas Inc.’s upsized $300 million add-on to its existing 2020 notes.

What was to have been the day’s third such quick-to-market offering was being shopped around by developer and builder M/I Homes, Inc., but pricing terms for that proposed two-part transaction was not heard by the time market activity wound down. Monday evening, the company announced that it had withdrawn that previously announced $350 million bond deal, citing market conditions.

The company also terminated a cash tender offer and a concurrent solicitation of consents for all of its 8 5/8% notes due 2018.

Among recently priced bond deals, traders saw a fair amount of activity in Friday’s two-part offering from Fresenius Medical Care, as well as Thursday’s issue from midstream natural gas and NGL services company Targa Resources Partners LP.

But in general, traders said that market activity was dull, with most levels unchanged to slightly up or down and on smaller total volume than Friday’s market saw.

© 2015 Prospect News.
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