Almost-blizzard lulls U.S. junk primary; Europe busier; new Heinz active; Cliffs gains

By Paul Deckelman and Paul A. Harris

New York, Jan. 27 – What had been billed as a “monster” blizzard turned out to be something considerably less in New York, but it still managed to stifle Tuesday’s domestic high-yield market, which saw no dollar-denominated pricings; the only deal actually seen was a smallish seven-year subordinated euro-denominated transaction from Belgium’s Sarens Group.

European junk marketeers also reported that France’s Albea Beauty Holdings SA would be shopping around a small add-on to its existing 2019 notes.

But although there were no actual U.S. pricings in Junkbondland, the day was not without its own activity. Syndicate sources heard that Dollar Tree, Inc. will hit the road Wednesday with a $2.5 billion bond deal to partially fund its takeover of Family Dollar Stores Inc.

Meanwhile, Altice International’s $4.57 billion equivalent dollar- and euro-denominated multi-part deal continued to wend its way through the market, with pricing expected this week.

H.J. Heinz Co.’s $2 billion 10-year issue, which priced Monday, was eagerly gobbled up by investors when it started to trade, with over $100 million of the new bonds changing hands.

Away from the new-deal arena, Cliffs Natural Resources Inc.’s bonds rose solidly for a second straight session, buoyed by the news that a Canadian affiliate had begun restructuring. And coal operator Peabody Energy Corp.’s bonds rose after it reported quarterly and full-year earnings.

© 2015 Prospect News.
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