N&W Global Vending adds to building calendar; inVentive’s recent deal slips; ‘go-to’ names mixed

By Paul A. Harris and Stephanie N. Rotondo

Seattle, Oct. 3 – The primary high-yield bond market was taking a breather on Monday, as Rosh Hashanah kept some players away from their desks.

N&W Global Vending SpA generated the only primary market news heard on Monday, as it began a roadshow for a €300 million offering of seven-year senior secured fixed-rate notes (expected ratings B2/B).

The deal is expected to price on Thursday.

Goldman Sachs International and Deutsche Bank are joint global coordinators and joint bookrunners. Banca IMI and Credit Agricole are also joint bookrunners.

The notes come with three years of call protection.

Proceeds will be used to repay the bridge loan used in the financing of Lone Star Funds' acquisition of N&W Global Vending, a vending machine company with headquarters in the United Kingdom.

The issuing entity will be LSF9 Canto Investments SpA, an affiliate of Lone Star.

N&W Global Vending takes its place on a calendar already populated by handful of deals expected to price by the end of the week.

Lions Gate Entertainment Corp. is on the road with a $520 million offering of eight-year senior notes (expected ratings B2/B-).

Alliance One International is roadshowing $275 million, expected to price in the week ahead.

Also on the road is CBS Corp. with $460 million.

Virgin Australia Holdings Ltd. plans to sell a to-be-determined amount of five-year senior notes in the week ahead.

And Confie is in the market with $350 million of six-year senior notes.

The secondary high-yield bond market was meantime mixed in Monday trading, according to market sources.

However, the wishy-washiness of the day was attributed to it being a Monday – and the first trading day of the month, to boot – as well as the Jewish holiday.

“Monday plus a holiday equals dreadful,” said one trader.

And without any fresh news to act as a catalyst, most of the day’s activity was mostly centered on typical “on-the-run” issues.

Among recently priced deals, inVentive Health Inc.’s 7½% notes due 2024 – a deal priced Thursday – were seen at 101 5/8 bid, 102 1/8 offered. That was down from 102 bid on Friday.

The deal was upsized from $670 million after having been previously downsized from $720 million, with a shift of proceeds to the concurrent term loan.

The yield printed at the tight end of the 7½% to 7¾% yield talk and well inside of initial guidance of 8% to 8¼%, according to market sources.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., BofA Merrill Lynch, Morgan Stanley & Co. LLC, Barclays and Jefferies LLC are the joint bookrunners.

As for more established issues, a trader saw Caesars Entertainment Corp.’s 12¼% notes due 2018 added over half a point to close at 63 3/8. A second source placed the 10% notes due 2018 at 63¾ bid, up half a point.

Meanwhile, iHeartMedia Inc.’s 10% notes due 2018 slid a shade to 66. Intelsat SA’s 6¾% notes due 2018 were also slightly weaker at 66½.

There were a couple of unusual names that were trading on Monday.

A trader said Speedy Cash Intermediate Holdings Corp.’s 10¾% notes due 2017 added 3 points to close at 71.

PAC Drilling Co.’s 7¼% notes due 2017 – another name that isn’t often seen trading – finished 1½ points lower at 39.

Market ends mixed

The KDP High Yield index traded up on Monday, despite the muted liquidity.

The index reading was 70.9, with a 5.22% yield. That compared to Friday’s reading of 70.86.

Yield was steady at 5.22%.

However, a market source saw the CDX High Yield North American Series 27 index slipping a touch to 104.231 bid, 104.31 offered.

© 2015 Prospect News.
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