Avantor sells $4.1 billion; new Allison, Cincinnati Bells active; Sprint up on T-Mobile news

By Paul A. Harris and Stephanie N. Rotondo

Seattle, Sept. 22 – The high-yield primary saw just two deals price in the United States market – but one of them was a giant.

Avantor, Inc. priced a downsized $4.1 billion equivalent of high-yield notes in three tranches on Friday.

However terms were only set after the transaction stayed in the market an extra day to allow changes to the covenants and structure in the face of pushback from potential buyers, sources said.

The two dollar tranches came wide of initial talk although the euro piece priced at the tight end of talk.

Also pricing on Friday was a $350 million issue of eight-year senior notes (B3/B-) from Cincinnati Bell Inc., which came at par to yield 8%.

The two deals brought issuance for the week to $8.70 billion, down from the very strong $12.38 billion the week before but still well above typical levels.

Away from the new issues, Sprint Corp. was “very active” on reports the wireless telecommunications company was nearing a merger agreement with T-Mobile.

But Sprint’s good news didn’t do much to help struggling telecom names like Windstream Holdings Inc. or Frontier Communications Corp., both of which have been declining in recent sessions and continued to weaken on Friday.

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