Avison Young, upsized Gogo add-on price; Kinetic Concepts bonds jump on Acelity unit sale

By Paul Deckelman and Paul A. Harris

New York, Dec.20 – The high yield primary market continued to move toward the expected year-end lull on Tuesday, clearing another name from a now pretty barren new-issue calendar.

Syndicate sources said that Canadian commercial real estate company Avison Young (Canada) Inc. priced a $130 million offering of five-year secured notes at a deep discount to par, after some tinkering around with its covenants to make it more palatable to investors.

They also said that in-flight connectivity services provider Gogo Inc. priced an upsized $65 million add-on to its existing 12½% senior secured notes due 2022 that it sold earlier this year.

Away from the new issues, traders did not see much in the way of trading around in recently priced offerings, which had been dominating the Most Actives list over the past week or so. Only last week’s offering of seven-year notes from offshore energy driller Noble Holding International Ltd. and last month’s five-year issue from Canadian aircraft and railroad equipment maker Bombardier Inc. were seen really generating any volume.

Away from the new or recent issues, Kinetic Concepts Inc.’s bonds jumped in active dealings after the wound-therapy products company’s corporate parent, Acelity LP Inc., announced plans for a $2.9 billion unit sale, with at least some of that big cash haul expected to go to pay down the company’s sizable debt load.

Statistical market performance measures were mixed for a fourth consecutive session on Tuesday.

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