Wesco clears market; Targa prices; Sealed Air, goeasy lag; Outfront, Scientific Games trade up

By Paul A. Harris and Abigail W. Adams

Portland, Me., Nov. 13 – The domestic high-yield primary market remained active on Wednesday with five deals clearing the market, including one long-delayed offering.

Wesco PattonAir priced $2,075,000,000 of junk bonds in three tranches in a challenging acquisition/merger financing that first hit the market in mid-October.

In drive-by action, Targa Resources Partners LP and Targa Resources Partners Finance Corp. priced an upsized $1 billion issue of senior notes due March 1, 2030 (expected ratings Ba3/BB), and Murphy Oil Corp. priced a $550 million issue of eight-year senior notes (expected ratings Ba2/BB+/BB+).

Cascades Inc. and Cascades USA Inc. priced three tranches of senior notes (Ba3/BB-) in a dual-currency deal.

And Vector Group Ltd. priced a $230 million add-on to its 10½% senior notes due Nov. 1, 2026 (Caa1/B-).

Meanwhile, new paper was in focus in the secondary space. However, the reception was mixed.

Scientific Games Corp.’s two tranches of senior notes (Caa1/B-) outperformed with the notes climbing well above their issue price despite the tight pricing.

Outfront Media Capital LLC and Outfront Media Capital Corp.’s 4 5/8% senior notes due 2030 (B1/BB-) were also trading at a premium to their issue price.

However, Sealed Air Corp.’s 4% senior notes due 2027 (Ba3/BB+) and goeasy Ltd.’s 5 3/8% senior notes due 2024 (Ba3/BB-) saw lackluster receptions in the secondary space.

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