Caesars, PGT price; megadeals on deck; Allegheny, SNF, RLJ, Ball at a premium

By Paul A. Harris and Abigail W. Adams

Portland, Me., Sept. 10 – Two drive-by deals came to the high-yield market on Friday, capping off a $6.5 billion post-Labor Day week.

Caesars Entertainment Inc. priced an upsized $1.2 billion issue of eight-year senior notes (Caa1/CCC+) and PGT Innovations, Inc. priced an upsized $575 million issue of eight-year senior notes (B2/B+).

The coming week is expected to be a big one with two megadeals already on the forward calendar.

ASP Unifrax Holdings, Inc.’s $1.2 billion offering of senior notes and the Solenis, formerly Ashland Water Technologies, $2.4 billion equivalent two-tranche offering are expected to price next week, in addition to a slew of familiar high-yield names.

New issuance caused an uptick of activity in the secondary space with the secondary market expected to become increasingly more active alongside the new issue calendar.

New paper was performing well across the board.

However, Allegheny Technologies Inc.’s two tranches of senior notes (B3/B) outperformed with both tranches rising to a 101 handle in active trading.

RLJ Lodging Trust, LP’s 4% senior secured notes due 2029 (Ba3/BB-) were also putting in a strong performance.

While SNF’s two tranches of senior notes (Ba1/BB+) and Ball Corp.’s 3 1/8% senior notes due 2031 (Ba1/BB+) were trading at a premium to their issue price, they remained on a par-handle.

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