Midday Commentary: Ashland's new 30-year notes outperforming shorter maturities early Friday

By Paul A. Harris

Portland, Ore., Feb. 22 - Ashland Inc.'s newly minted 6 7/8% senior notes due May 15, 2043 were trading at 103¼ bid, 103¾ offered on Friday morning, outperforming the new senior notes in the three shorter-duration tranches, according to a trader.

That's despite the fact that the $350 million 30-year note issue saw the weakest demand among all four tranches that Ashland priced, in an overall $2.3 billion transaction on Thursday, the source added.

To recap, the Ashland four-part senior notes transaction (Ba1/BB) also included a $600 million tranche of three-year notes, which priced at par to yield 3%, a $700 million tranche of five-year notes, which priced at par to yield 3 7/8%, and a $650 million add-on to the 4¾% senior notes due Aug. 15, 2022, which priced at 99.06 to yield 4 7/8%.

All three shorter-duration tranches were trading about 1½ points above the issue price on Friday morning, the trader said.

Elsewhere in Friday's secondary market, the performance of some of the recent issues appeared less robust, the trader said.

The Clear Channel Communications, Inc. 11¼% priority guarantee notes due March 1, 2021 (Caa1/CCC+), which priced at par on Thursday in a $575 million issue, were hovering around the issue price.

Also the new Goodyear Tire & Rubber Co. 6½% senior notes due March 1, 2021 (B1/B+/B), which priced at par on Wednesday in a $900 million issue, were trading around the new issue price.

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