Four Issuers Kick Off July with $1.46B in HY
July 2, 2009
Four companies started July off by issuing a total of $1.46 billion in high yield bonds Wednesday. And another company plans to price $275 million today.
Burlington, Mass.-based telecommunications service provider One Communications is looking to issue $275 million in senior notes due 2015 today. The company will use the proceeds to pay down term loan debt. Morgan Stanley is the lead underwriter.
Wayne, N.J.-based toy retailer Toys ’R Us priced the largest offering Wednesday, $950 million in 10.75% senior notes due 2017. The bonds priced with an OID of 97.40, netting the company $925.3 million and bringing the total yield to 11.25%, which was slightly above the price talk of 10.75% to 11%. Banc of America Securities, Deutsche Bank, Goldman Sachs and Wachovia were joint bookrunners on the deal.
Shipping company Commercial Barge issued $200 million in 12.5% senior notes due 2017 Wednesday. The Jeffersonville, Ind.-based company will use the proceeds to help repay its existing credit facility. The bonds priced with an OID of 95.18 to bring Commercial Barge $190 million in proceeds. The company is also planning a $350 million first-lien asset-backed revolver to help repay the existing debt. BofA was the lead underwriter
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 was the bookrunner. And Casella Waste issued $180 million in 11% senior notes due 2014. The notes priced with an OID of 97.21 to net the company $175 million. BofA was the lead underwriter.
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