Morning Commentary: Cumulus Media sets talk; Aker BP upsized; Entertainment One on road

By Abigail W. Adams

Portland, Me., June 12 – The domestic high-yield primary market stood poised for another busy session with two deals set to price on Wednesday.

Aker BP ASA upsized its offering of five-year senior notes (Ba1/BB+/BBB-) to $750 million and set final terms for a yield of 4¾%, according to a market source.

Final terms tightened from the official price talk of 4 7/8% to 5 1/8%, which was in line with initial talk in the low 5% area. The initial size of the deal was $500 million.

Books closed early Wednesday with the deal slated to price shortly thereafter.

Global coordinator Barclays will bill and deliver for the Rule 144A and Regulation S deal.

Cumulus Media New Holdings Inc. talked its $300 million offering of seven-year senior secured first-lien notes (B2/B) to yield in the 7% area, according to market sources.

Official talk comes in line with initial price talk, which was in the low 7% area, a market source said.

Books close at 1 p.m. ET on Wednesday with pricing expected thereafter.

BofA Securities Inc. is the left bookrunner for the Rule 144A for life offering.

The European primary market was also active on Wednesday with one new deal joining the forward calendar.

Entertainment One Ltd. started a roadshow on Wednesday for a £425 million offering of seven-year senior secured notes, according to a market source.

The roadshow is set to run until Friday with pricing expected thereafter.

JPMorgan (billing and delivery) and BNP Paribas are global coordinators for the Rule 144A and Regulation S deal.

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