Boston Scientific to Offer $1B in HY Bonds
December 10, 2009
Boston Scientific added another $1 billion to the high yield bond pile as companies move to price debt ahead of year’s end. The total in potential junk deals is now $6.235 billion. Five companies priced $2.425 billion today and Wednesday to bring the weekly new issue total to $3.45 billion.
Boston Scientific plans to issue $1 billion in two separate tranches of bonds, the company said in a Securities and Exchange Commission filing today. The medical technology company plans to price senior notes due 2014 and senior notes due 2019 and use the proceeds to refinance bank debt. Deutsche Bank is the lead underwriter.
Two companies could price deals today. Price talk on a Bumble Bee Foods offering of $220 million in senior secured notes due 2015 is between 8% and 8.25%. Talk on Dollar Financial’s offering of $350 million senior notes due 2016 indicates a total yield of 10.5% after an OID of 99 and 98.
Meanwhile, issues that hit the market Wednesday and today are as follows: American Axle & Manufacturing issued $425 million in 9.25% senior secured notes due 2017 today with a total yield of 9.5%, which was on the low end of price talk; Cascades priced $250 million in 7.875% senior notes due 2020; Pinnacle Foods issued $300 million in 9.25% senior notes due 2015 at par; SandRidge Energy issued $450 million in 8.75% senior notes due 2020; and NII Capital issued $500 million in 8.875% senior notes due 2019.
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