Midday Commentary: Rosetta rockets up 2 points; Softbank dual-tranche deal sees $7 billion orders

By Paul A. Harris

Portland, Ore., April 18 - A busy Thursday morning in the high-yield market saw headlines streaming from Europe and the United States.

Deal terms circulated on the Rosetta Resources Inc. $700 million issue of eight-year senior notes (B2/B+), which priced at par to yield 5 5/8%.

The yield printed at the tight end of price talk set in the 5¾% area.

The deal saw strong demand, and levels in the secondary market rocketed up 2 points, according to a trader, who saw the notes at 102½ bid, 103 offered.

JPMorgan, Morgan Stanley and Wells Fargo led the debt refinancing and general corporate purposes deal.

Meanwhile the Softbank Corp. split-rated megadeal continued on course for a Thursday execution.

The $2 billion equivalent of non-callable seven-year senior notes (confirmed Baa3/expected BB+) are playing to $7 billion of orders, according to a market source.

The dollar-denominated notes should print at 4½%, and the euro notes should come at 4 5/8%, the source added.

Both tranches were talked to yield 4½% to 4¾% on Wednesday.

And Cogeco Cable talked its $400 million offering of seven-year notes to yield in the 5% area. Books close Thursday at 2 p.m. ET, and pricing is set to take place thereafter.

Three deals on deck in Europe

In Europe, Italy's Wind Telecomunicazioni SpA came into Thursday's high-yield primary with a €500 million equivalent two-part drive-by senior secured note offering (Ba3//BB).

Offered is a $400 million tranche of seven-year fixed-rate notes, which is non-callable for three years and talked with a yield in the 6 5/8% area.

In addition Wind is offering €150 million of six-year floating-rate notes, which are non-callable for one year and talked at a Euribor spread of 525 basis points to 550 bps.

Meanwhile books are closed for the upsized €350 million (from €300 million) offering of seven-year senior secured notes (expected ratings B3/BB-) from France's Elior Finance & Co. SCA.

On Wednesday the notes were talked to yield in the 6¾% area.

Also expected to price on Thursday is the Titan Luxco 2 Sarl/TeamSystem SpA €300 million offering of seven-year senior secured notes (expected ratings B2/B). The deal was talked on Wednesday with a yield in the 7½% area.

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