Burger King sets bond plans amid primary drought, existing bonds busy; Momentive dives

By Paul Deckelman and Paul A. Harris

New York, Aug. 26 – Burger King Worldwide Inc. outlined its plans on Tuesday for funding of its planned acquisition of Canadian coffee and donut dispenser Tim Hortons – and the menu includes $2.25 billion of secured notes as well as over $7 billion of bank debt.

News of the upcoming bond issue was about the only thing going on in the high-yield primary market on Tuesday. New-deal activity is not expected to pick up until after Labor Day, when a number of deals will be on tap, many of them driven by merger and acquisition activity.

Burger King’s existing 2018 bonds, which had seen little immediate activity in the wake of Monday’s announcement, were meanwhile among the busiest credits in Junkbondland on Tuesday, although traders said that they mostly moved in the same 106-area context that they have recently been in.

Away from Burger King, it was another busy session on the downside for Momentive Performance Materials Inc.’s secured bonds after a bankruptcy judge ruled against efforts by the holders of those notes to force the company to make a special interest payment to them as part of its reorganization plan.

Statistical market performance indicators turned mixed on Tuesday after having risen across the board on Monday, their fourth mixed session in the last five.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.