Nexeo Plastics prices; Kodiak pushed; Staples plans $2.13 billion; ADT, Kosmos below par

By Paul A. Harris and Abigail W. Adams

Portland, Me., March 22 – The high yield primary market saw one deal clear the calendar and another carry over to the March 25 week on Friday.

Nexeo Plastics priced a $410 million issue of 10 1/8% seven-year senior secured notes (B3/B) at 98.171 to yield 10˝%.

Kodiak Gas Services LLC was expected to price its $400 million offering of eight-year senior notes (Caa2/B-/B). However, pricing was pushed into the upcoming week.

Staples Inc. is planning to bring $750 million in new secured debt and $1.375 billion of unsecured debt as part of a refinancing deal in the near future.

The company’s 8˝% senior notes due 2025 shot up in high-volume activity on news the notes would be taken out via a new offering.

While Staples was posting gains, the secondary space ended an otherwise strong week on soft footing with the market in general down about ¼ point, sources said.

ADT Corp.’s new senior notes (Ba3/BB-) and Kosmos Energy Ltd.’s 7 1/8% senior notes due 2026 (expected ratings BB-/BB) were both below their new issue price in secondary trading.

Power Solutions’ 8˝% senior notes due 2027 (B3/B/B-) continued to lose ground in active trading on Friday with the notes closing the week below par.

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