Gaming and Leisure plans $1 billion drive-by; Fair Isaac, Avation up

By Paul A. Harris

Portland, Ore., May 7 – Gaming and Leisure Properties, Inc. unveiled a $1 billion two-part split-rated senior bullet deal (expected ratings Ba1/BBB-) in an otherwise quiet Monday primary market.

The debt refinancing deal is coming in tranches of seven-year notes with initial price talk of 5 3/8% and 10-year notes with initial price talk of 5¾%.

It is expected to price in a drive-by prior to Monday’s close.

Wells Fargo is the left bookrunner.

Elsewhere, the first Monday of May is a bank holiday in the United Kingdom, which has served to curtail the amount of new issue news emanating from the European high-yield primary market, sources said.

Fair Isaac’s fair-sized gain

Trading activity was very light as the May 7 week got underway in New York, according to a bond trader working there.

High-yield ETFs were unchanged on the morning.

The SPDR Blmbg Barclays High Yield Bd ETF (JNK) was unchanged at midmorning at $35.71 per share.

Among recent issues Fair Isaac Corp.’s 5¼% senior notes due May 2026 (Ba2/BB+) were trading well in the secondary market at 101 1/8 bid, 101 5/8 offered on Monday, the trader said.

The $400 million issue priced at par on May 1.

Bonds priced last week by Singapore’s Avation plc were also turning in a solid secondary performance at par ¾ bid, 101 ¼ offered, up ¾ of a point.

Avation’s 6½% senior notes due May 15, 2021 (B/BB-) came at par in a $300 million offering on May 3.

Bonds priced last week at a discount by TransDigm Group Inc. were also turning in a good secondary market performance at par 3/8 bid, par 7/8 offered.

TransDigm’s 6 7/8% senior subordinated notes due May 15, 2026 (B3/B-) came at 99.24 to yield 7% in a $500 million issue on May 2.

Some other recent deals were straddling the balk line or hovering slightly below it.

American Builders & Contractors Supply Co., Inc. 5 7/8% senior notes due 2026 (B3/B+) sold via subsidiary ABC Supply Co., Inc. were at 99½ bid, par offered on Monday, the trader said.

The downsized $600 million deal priced at par on May 1, at the wide end of price talk.

And GFL Environmental Inc.’s 7% senior notes due June 2026 (Caa1/B-) were at 99½ bid, par offered.

The $400 million issue priced at par on May 3.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.