Morning Commentary: Yum!, Murphy Oil, Iron Mountain market notes; Extended Stay on tap

By Cristal Cody

Tupelo, Miss., Sept. 4 – The junk bond market revved up on Wednesday with a number of deals on deck and the market opening up 1/8 point.

Yum! Brands, Inc. is offering an upsized $800 million of senior notes due Jan. 15, 2030 (B1/B+) in a Rule 144A and Regulation S for life deal. Price talk was in the 4 7/8% area.

The deal was upsized from $600 million.

Investor calls are being held over the morning with pricing expected in the afternoon.

Murphy Oil USA Inc. (Ba1/BB+) expects to tap the primary market with $500 million of registered guaranteed 10-year senior notes.

Iron Mountain Inc. (Ba3/BB-) intends to price $800 million of guaranteed 10-year senior notes in a Rule 144A and Regulation S private placement offering.

The deal is being marketed via global investor calls over the morning.

In other primary action, Eurofins Scientific S.E. plans to sell €300 million of perpetual securities on Wednesday.

Initial price talk is in the 3 3/8% area.

Meanwhile, Extended Stay America Inc. (Ba3/BB-) expects to bring $500 million of new notes soon. Investor calls will be held on Thursday.

On Tuesday, Icahn Enterprises LP and Icahn Enterprises Finance Corp. priced $500 million of five-year senior notes in a deal that attracted $1.5 billion of orders, a source said.

The five-year issue priced on top of talk at par to yield 4¾%.

Also on Tuesday, ING Groep NV priced $1.5 billion of registered perpetual additional tier 1 contingent convertible capital securities (Ba1//BBB-).

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