European primary active; Transocean dominates; Simmons outperforms; Qorvo struggles

By Paul A. Harris and Abigail W. Adams

Portland, Me., July 11 – While the domestic primary market was quiet on Wednesday, the European primary market returned to action with two deals pricing and one more launching.

K+S AG priced a €600 million issue of six-year senior notes (S&P: BB) at par to yield 3¼%.

Italy-based specialty paper manufacturer Fedrigoni priced a €125 million add-on to its Euribor plus 412.5 basis points senior secured floating-rate notes at 97.00.

Greek telecom OTE plc launched an upsized €400 million offering of four-year senior notes at 2.45%.

Meanwhile, secondary market activity on Wednesday belonged to deals that priced on Tuesday.

Transocean Pontus Ltd.’s newly priced 6 1/8% senior notes due 2025 (B1/BB-) dominated secondary market activity, trading over 1 point above their issue price.

However, Simmons Foods, Inc.’s 7¾% first-lien senior secured notes due Jan. 15, 2024 (B1/BB-) were the outperformers of Tuesday’s deals with the notes seen more than 2½ points above their issue price.

Qorvo, Inc.’s 5½% senior notes due 2026 struggled in the secondary market, at times dipping below their issue price.

With the price of West Texas intermediate crude oil for August delivery dropping $3.50 on Wednesday, California Resources Corp.’s 8% senior notes due 2022 saw a fresh round of activity with the notes down 1½ point.

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