Morning Commentary: Venture Global junk mega-deal awaited; Cvent improves; Iqvia strong

By Abigail W. Adams

Portland, Me., May 19 – While only one deal is set to price during Friday’s session, it will claim the title of the largest deal of the year.

Venture Global LNG Inc. is set to price its $3.5 billion offering of five-year senior secured notes (Ba1/BB) that are non-callable for two years and eight-year unsecured notes that are non-callable for three years with books closing early Friday.

Price talk has the secured notes coming with a yield of 8% to 8¼%, which comes on top of initial guidance.

The unsecured notes are talked with a yield of 8¼% to 8½%, on top of initial guidance.

The tranche sizes remain to be undetermined with an upsize expected, sources said.

The offering was heavily oversubscribed with $6.8 billion in the book late Thursday.

Meanwhile, the secondary space firmed slightly early Friday with the cash bond market adding about 1/8 to ¼ point after a lackluster week.

The deals to clear the market during Thursday’s session saw a mixed performance in secondary activity.

Iqvia Holdings Inc.’s new 6½% senior notes due 2030 (Ba2/BB) were putting in a strong performance with the notes shooting up to a 101-handle.

They were changing hands in the 101 to 101½ context, a source said.

Iqvia priced a $500 million tranche of the junk-rated 6½% notes at par in a Thursday drive-by as part of a two-tranche offering.

The deal also included an upsized $750 million, from $500 million, tranche of five-year senior secured notes (Baa3/BBB-), which priced at 99.993 to yield 5.702%.

Capstone Borrower Inc.’s 8% senior secured notes due 2030 (B2/B-/BB) backing Blackstone’s buyout of Cvent Holding Corp. improved early Friday after a weak break.

The notes were marked at 99 5/8 bid, par 1/8 offered early Friday with the notes wrapped around par.

“They’re fighting back,” a source said.

The notes saw a weak break and closed the previous session at 99¾.

Cvent priced a downsized $400 million, from $500 million, issue of the 8% notes at par on Thursday.

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