Raising Cane’s prices $500 million; junk rebounds; Navient, Ford higher

By Paul A. Harris and Cristal Cody

Portland, Ore., Nov. 1 – Raising Cane’s Restaurants LLC priced Wednesday’s sole junk bond deal, a $500 million issue of 5.5-year senior notes (B3/B/BB-) that came at par to yield 9 3/8%, at the tight end of talk.

The debt refinancing deal was heard to have played to $2.3 billion of demand, according to a bond trader.

The secondary trading space overall was stronger Wednesday after the Federal Reserve left rates unchanged as widely expected by market economists.

“Bonds rebounded,” a source said. “The CDX is up 59 cents, the HYG is up 69 cents.”

New junk paper gained over the day.

Navient Corp.’s $500 million of 11½% senior notes due March 15, 2031 (Ba3/B+/BB-), priced in a Tuesday drive-by, improved in the secondary market.

Meanwhile, Ford Motor Co. and Ford Motor Credit Co. LLC’s senior notes (Ba2/BBB-/BBB-) continued to dominate the secondary market after S&P Global Ratings upgraded the issuers to high-grade.

© 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.