GM unit leads nearly $2.6 billion drive-by parade; overall market easier; Quicksilver quashed

By Paul Deckelman and Paul A. Harris

New York, Sept. 22 – General Motors Co.’s automotive finance unit drove by the high-yield primary market on Monday, opened the trunk and then came home with some $2 billion of fresh cash, split into three-year and seven-year notes.

That was the signature deal of a session that saw some $2.58 billion of new dollar-denominated, fully junk-rated paper price in five tranches, upping the ante from Friday’s session, when just $550 million was completed in two tranches, according to data compiled by Prospect News.

Besides the megadeal from General Motors Financial Co. Inc., there were a pair of $250 million offerings, including an issue of 10-year notes from real estate investment trust the Geo Group, Inc. and an eight-year add-on from a very familiar junk issuer with a not-yet familiar new name. The latter was iHeart Communications, Inc., the broadcasting and outdoor media company formerly known as Clear Channel Communications, Inc.

And Northern Tier Energy LLC did a $75 million add-on to its 2020 secured notes.

The GM Financial and Northern Tier issues priced too late in the session for any kind of an aftermarket, while the other deals were seen by traders a little above their respective issue prices.

Away from the new deals, the overall secondary market was seen about ¼ to ½ of a point easier on average, but underperforming energy company Quicksilver Resources Inc.’s bonds were down by several points for a second consecutive session, in active trading.

© 2015 Prospect News.
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