Midday Commentary: New NXP 5¾% notes rise 1¼ points; note offerings in market going well

By Paul A. Harris

Portland, Ore., March 6 - With the market trading flat to slightly lower, the new NXP 5¾% notes due 2023 (B3/B) were a point and a quarter above the new issue price on Wednesday morning, according to a trader who spotted them at 101¼ bid, 101¾ offered.

The Netherlands-based semiconductor company priced its deal at par on Tuesday in an upsized $500 million issue.

The CDX 19 high-yield index, meanwhile, was trading flat to perhaps 1/32 point lower at 103 7/16 bid, 103 9/16 offered, according to a portfolio manager.

In the primary market, deals on the road are mostly going well, according to a trader.

MasTec, Inc.'s upsized $400 million offering of 10-year senior notes (existing Ba3/BB-) is going well.

The deal, which was upsized from $350 million on Tuesday and talked with a yield in the 5% area, is set to price Wednesday via left bookrunner Barclays and joint bookrunners Morgan Stanley & Co. LLC and SunTrust Robinson Humphrey Inc.

The Coinstar, Inc. $300 million offering of six-year senior notes (Ba3/BB-) will be "no problem," the trader said, adding that the deal is being discussed in a yield context in the 6% area.

BofA Merrill Lynch, Wells Fargo Securities LLC and HSBC Securities (USA) Inc. are the joint bookrunners for the deal, which is set to price before the end of the week.

And the MetroPCS Wireless, Inc. benchmark-sized deal, which was set to begin a brief roadshow Wednesday, features eight-year notes that are coming with preliminary guidance of 6¼% to 6½% and 10-year notes being guided at 6½% to 6¾%.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley are the bookrunners.

There was also a press release from American Apparel, Inc. on Wednesday morning announcing the company's intention to sell senior secured notes for debt refinancing and general corporate purposes.

No size, syndicate or timing had been announced previous to press time.

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