Two Issuers Plan $845M in HY Deals
October 28, 2009
Two companies jumped into the high yield pipeline Tuesday, adding another $845 million in potential junk bond deals. There is now a total of $3.57 billion on the calendar.
Berry Plastics is planning two tranches of bonds for a total offering of $620 million. The plastic provider expects to price $325 million in senior-secured notes due 2015 and $295 million in senior-secured second-lien notes due 2014 by Thursday, according to KDP Investment Advisors. A Berry Plastics representative was not immediately available for comment. Bank of America Merrill Lynch is the lead bookrunner.
Firearms manufacturer Colt Defense is looking to issue $225 million in senior notes due 2017 by Nov. 4, with a roadshow beginning today and ending on Nov. 3. A Colt spokesman did not immediately reply to a request for comment. JPMorgan is the lead underwriter.
Two companies issued $1.33 billion in new junk bonds Tuesday. Universal City Development Partners issued $400 million in 8.875% senior notes due 2015 and $225 million in 10.875% senior notes due 2016. Freedom Group priced $225 million in 10.25% senior secured notes due 2015. The notes priced above par at 106.25, making it one of only a handful of companies to price at or above par this year.
Six other companies remain in the queue to price new junk bonds. General Communications announced Oct. 21 that it planned to issue $400 million in senior notes due 2019 and will wrap up its road show today. Reynolds Group increased the size of its offering to $1.125 billion from $1.1 billion. Price talk on the offering, which was announced Oct. 15 and is now expected to price Thursday, indicates a total yield of between 7.75% and 8%, with an OID of 99. Other companies hoping to issue new bonds include Associated Materials and NCL.
For more information on related topics, visit the following:
