Global new issue calendar reaches $5 billion; Targa in demand; Freedom, Compass trade down

By Paul A. Harris and Abigail W. Adams

Portland, Me., April 9 – European issuers dominated primary market news on Monday. The global calendar for new issuances spiked to $5 billion with several dual euro/dollar offerings in the works.

TopBuild Corp. joined the calendar of purely dollar-denominated issuances with its offering of $375 million eight-year senior notes (S&P: expected BB-), which is expected to price on Thursday.

Lycra Co. and OCI NV both launched full roadshows in Europe and the United States. Lycra is offering an $810 million two-part offering of senior secured notes; OCI is offering a $1 billion equivalent offering of five-year senior secured notes.

Both deals will have dollar- and euro-denominated tranches.

Novafives SAS, Vallourec SA and Piaggio & Co. SpA are launching roadshows for euro-denominated junk bond offerings.

As the primary market prepares new paper, last week’s deals remained the focus of an overall quiet trading session in Junkbondland.

However, paper from last week remained active in the secondary space. Targa Resources Partners LP’s new 5 7/8% senior notes due 2026 (Ba3/BB-) were one of the primary volume movers of the secondary space.

Both Targa and McDermott International Inc.’s recently priced 10 5/8% senior notes due May 2024 continued to trade up on Monday.

However, Freedom Mortgage Corp.’s new 8¼% senior notes due 2025 and Compass Diversified Holdings LLC’s new 8% senior notes due 2026 were seen down on Monday.

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