Railworks prices; junk PIK deal on deck; United Site outperforms; Asbury on 101-handle

By Paul A. Harris and Abigail W. Adams

Portland, Me., Nov. 5 – The domestic high-yield primary market had one deal price during Friday’s session.

However, the majority of news centered on the market's most aggressive structure – pay-if-you-can PIK toggle holdco notes backing shareholder dividends.

Angus Chemical Co.’s $200 million offering of five-year senior pay-if-you-can PIK toggle notes (Caa2/CCC/CCC) is on deck with the deal expected to price Monday.

In Europe, Italian gaming operator Lottomatica SpA priced a €400 million issue of 8 1/8%/8 7/8% five-year pay-if-you-can senior secured holdco PIK toggle notes (Caa1/CCC+).

It is unclear what the week ahead holds for new issuance. However, the record-breaking pace of the primary market is expected to slow in the coming weeks.

Meanwhile, the secondary space remained firm on Friday as the 10-year Treasury yield continued to decline, closing the day at 1.45%.

However, trading activity continued to focus on new and recent issues.

PECF Intermediate Holding III Corp.’s (United Site Services) 8% senior notes due 2029 (Caa2/CCC) outperformed in the aftermarket with the notes jumping to a 103-handle, despite reportedly struggling during bookbuilding.

Asbury Automotive Group, Inc.’s two tranches of senior notes were also putting in a strong performance with the notes trading on 101-handles.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.