Cos. to Price More than $1.7B in HY
July 1, 2009
Kicking off the second half of the year, five companies are bringing a total of $1.76 billion in high yield bonds to the primary today. Issuers are on pace to sell more than $3.2 billion in new junk bonds this week.
Toy retailer Toys ’R Us is looking to issue $950 million in new senior notes due 2017. Price talk is between 10.75% and 11%, factoring in an OID of 97. Banc of America Securities is the lead bookrunner on the deal.
Shipping company Commercial Barge plans to issue $200 million in senior notes due 2017. The Jeffersonville, Ind.-based company will use the proceeds to help repay its existing credit facility. The company is also planning a $350 million first-lien asset-backed revolver to help repay the existing debt. BofA is the lead underwriter.
And Burlington, Mass.-based telecommunications service provider One Communications plans to issue $275 million in senior notes due 2015 and use the proceeds to pay down term loan debt. Morgan Stanley is the lead underwriter.
Two companies have already priced bonds today. Real Mex Restaurant priced $130 million in 14% senior notes due 2013. The bonds priced with an OID of 90 to bring the total yield to 18% and net the company $117 million. Jefferies is the bookrunner. Casella Waste issued $180 million in 11% senior notes due 2014 to yield the company $175 million. BofA is the lead underwriter.
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