Allison Transmission oversubscribed; Endo, Par Pharma jump; Bed Bath & Beyond surges

By Paul A. Harris and Abigail W. Adams

Portland, Me., March 26 – The domestic and European high-yield primary market each saw one deal price with several deals on deck for the domestic primary market.

In a highly oversubscribed offering, Allison Transmission, Inc. priced a $500 million issue of 10-year senior notes (Ba3/BB) at par to yield 5 7/8% in a quick-to-market trade.

Realogy Group LLC is expected to price $400 million of eight-year senior notes (B2) on Wednesday.

Surgery Partners, Inc. is expected to price its $430 million offering of eight-year senior notes before the week draws to a close.

Kodiak Gas Services LLC also still appears to be in the market with its $400 million offering of eight-year senior notes (Caa2/B-/B), although there were no updates on the deal, which was held over from last week.

In the European market, Volvo Car AB priced a €600 million issue of 2 1/8% senior notes (Ba1/BB+) at a 215 basis points spread to mid-swaps.

Meanwhile, the secondary space was firming on Tuesday.

Endo International plc’s junk bonds and Endo subsidiary Par Pharmaceutical Cos., Inc.’s recently priced 7½% senior notes due 2027 jumped in active trading on Tuesday following Purdue Pharma’s settlement with Oklahoma.

Bed Bath & Beyond Inc.’s 5.165% senior notes due 2025 jumped more than 4 points following activist investors’ plans for a management shakeup.

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