Morning Commentary: Fortress to price $100 million tap on Tuesday; Cimpress starts roadshow

By Abigail W. Adams

Portland, Me., May 29 – While high-yield new deal volume is expected to be light throughout the week, there was activity in the domestic and European primary markets in the return from the Memorial Day weekend.

Fortress Transportation and Infrastructure Investors LLC plans to price a $100 million add-on to its 6¾% senior notes due 2022 (B1/B+) in a Tuesday drive-by with initial guidance in the par area, according to a market source.

The notes are being marketed via an investor conference call scheduled for 11 a.m. ET.

Morgan Stanley & Co. LLC is the bookrunner for the Rule 144A and Regulation S for life offering, according to a market source.

Fortress priced the original $250 million of the 6¾% notes in March 2017 at 97 and since then has twice sold add-ons, $100 million in August 2017 and $100 million in December 2017.

They were last seen trading 101¾, according to Trace data.

Cimpress NV began a roadshow for a $400 million offering of eight-year senior notes on Monday with pricing expected on Friday, according to a market source.

J.P. Morgan Securities LLC, BofA Merrill Lynch, MUFG and SunTrust Robinson Humphrey Inc. are underwriters for the Rule 144A and Regulation S offering, according to a market source.

The notes are non-callable for three years.

Proceeds will be used to redeem the company’s outstanding 7% senior notes due 2022 (B1/B+), which have $275 million outstanding.

While the deal is both Rule 144A and Regulation S, it is primarily being marketed to European investors, sources said.

In the European market, Aker ASA priced a NOK 500 million add-on to its Nibor plus 265 basis points senior notes due 2023 at par, according to a company news release.

DNB Markets, Nordea and SEB were joint bookrunners for the Regulation S offering.

With political rumblings in Spain and Italy weighing down European stocks, equity markets in the United States off to a rough start on Tuesday and oil prices on the decline, new issue activity is expected to be day by day, sources said.

The new issuances in the next week are expected to be opportunistic and will largely depend on how headlines and how equity markets react.

In terms of new issuances in the European market, “I wouldn’t expect too much until things quiet down a bit,” a market source said.

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