Upsized HanesBrands drive-by, U.S. Steel, Vector Group price; Sprint eases amid earnings

By Paul Deckelman and Paul A. Harris

New York, May 3 – The high yield primary sphere churned out its first deals of the new month of May on Tuesday in a busy session that saw more than $3 billion of new dollar-denominated and fully junk-rated paper price.

The big deal of the day was apparel maker HanesBrands Inc.’s upsized $1.8 billion two-part drive-by offering, equally split into a pair of $900 million eight- and 10-year notes, which were seen trading around or a little above their respective issue prices in the aftermarket.

Metal manufacturer United States Steel Corp. brought an upsized $980 million secured five-year deal to market following a short roadshow; the new Steel bonds surged in heavy trading when they were freed for secondary market dealings.

Tobacco and real estate company Vector Group, Ltd. came to market with an upsized $235 million add-on to its existing secured 2021 notes a day after that prospective deal was announced, with the new bonds quoted higher.

Among recently priced new issues, there was brisk trading in Friday’s 10-year offering from equipment rental company United Rentals, Inc. and metal products maker BlueScope Steel’s five-year deal from Thursday, both off slightly from their recent highs.

Away from the new-deal arena, traders saw Sprint Corp.’s notes softer after the wireless operator posted a wider net loss and reduced revenues for its fiscal fourth quarter and full year, although it did report solid liquidity numbers.

© 2015 Prospect News.
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