Morning Commentary: Wind Tre bonds rocket after Hutchison ups its stake; market quiet

By Paul A. Harris

Portland, Ore., July 3 – The bonds of Italian telecom Wind Tre SpA rocketed Tuesday morning on news that Hong Kong-based conglomerate CK Hutchison agreed to acquire a 50% stake in the telecom from Amsterdam-based Veon for €2.45 billion, consolidating Hutchison's ownership of Wind Tre, sources said.

The Wind Tre 5% senior secured notes due January 2026 were 92 bid on Tuesday, traders said.

They traded on Monday at 78.

With the buyout of Veon's stake, Hutchison becomes the sole owner of Wind Tre.

Away from that name the high-yield market was dead quiet at all stations canvassed on Tuesday morning, as the market wound its way toward an early close ahead of the July 4 Independence Day holiday in the United States.

Among recent issues, the McClatchy Co. 9% senior secured notes due July 15, 2026 (B1/B-) – the most recent dollar-denominated deal to clear the market – were up a point at 99½ bid, sources said.

They were 98 bid, 99 offered on Monday morning.

The $310 million issue priced at 97.242 to yield 9½% on Friday.

Elsewhere bonds in both tranches of the Nationstar Mortgage Holdings Inc. recent $1.7 billion two-part placement of senior notes deal (B2/B+) – the 8 1/8% notes due July 2023 and the 9 1/8% notes due July 2026 – were 101¼ bid, 102 offered on Tuesday morning.

Both came at par amid a $4.68 billion burst of issuance on June 28.

Primary quiet

As expected the primary market remained quiet ahead of the mid-week holiday.

There are two euro-denominated deals in the market.

Paris-based Autodis SA started a roadshow on Monday for a €175 million offering of Euribor plus 437.5 basis points senior secured floating-rate notes due May 2022 (expected ratings B2/B).

Initial price talk is 99.25 to 99.5.

The roadshow wraps up on Wednesday.

Left lead bookrunner BNP Paribas will bill and deliver.

Elsewhere in the euro-denominated high-yield primary, Germany-based chemical manufacturer K+S AG was scheduled to begin meeting with fixed income investors on Monday ahead of a proposed €300 million minimum notes offering.

The notes would come with a six- or seven-year maturity.

Deutsche Bank, DZ Bank, Goldman Sachs and HSBC have the mandate.

In the dollar-denominated market, Tribal gaming concern Enterprise Development Authority is believed to still be in the market with a $440 million offering of five-year senior secured notes (S&P: expected B-), a capital expenditures deal via Wells Fargo.

The roadshow wrapped up in the middle part of the June 25 week.

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