Tronox prices wide; Boyne trades up; Coty downsizes; GCP, Petrobras active

By Paul A. Harris and Abigail W. Adams

Portland, March 27 – Two new deals totaling $1.15 billion priced in Junkbondland on Tuesday.

Tronox Inc. priced a $615 million issue of eight-year senior notes (B3/B-) at par to yield 6½% in a quick-to-market trade.

In a heavily oversubscribed deal, Boyne USA, Inc. priced a $400 million issue of seven-year senior secured second-lien notes (B2/B) at par to yield 7¼% at the conclusion of a roadshow.

The new notes were immediately seen “trading well, as expected,” a market source said.

Coty Inc. downsized its offering of senior notes (B2/BB) to $1.5 billion from $2 billion and also revised its dual currency, multi-tranche deal.

There is still $4.9 billion in prospective deals on the pre-Easter calendar awaiting price talk and timing.

As new paper flows into Junkbondland, recent deals have had mixed results.

Cequel Communications Holdings I, LLC 7½% senior notes due April 2028 (Caa1/B) continued to make gains in active trading in the secondary market.

KCA Deutag UK Finance plc 9 5/8% secured notes due April 2023 (B3/B-) also continued to trade up although the new notes have seen light trading volume.

While GCP Applied Technologies Inc.’s newly priced 5½% senior notes due April 2026 (B1/BB-) saw heavy trading volume on Tuesday, the new notes lost ground, closing Tuesday just above par.

Petroleo Brasileiro SA’s junk bonds, however, saw gains as Brazil’s scandal ridden state-owned oil producer moves closer to offloading its assets in Nigeria.

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