Ardagh, Cascades price dual-currency deals; Sprint Nextel better; funds gain $302 million

By Paul A. Harris and Stephanie N. Rotondo

Portland, Ore., June 5 – In the high-yield primary market, Ardagh Finance Holdings SA priced an upsized $1.05 billion equivalent dual-currency five-year senior PIK notes transaction (Caa2/CCC+) on Thursday.

Cascades Inc. also brought a dual-currency deal, Southern Star Central Corp. priced at the tight end of yield talk, Michaels Stores Inc. priced an add-on to its 5 7/8% senior subordinated notes due 2020, and DFC Global Corp. set price talk for its offerings of $500 million and £150 million of six-year senior secured notes (/B/).

The secondary market looked to be slightly firmer at the end of Thursday’s session.

Some names were getting boosted not by the overall market’s performance but by fresh news. Such was the case with Sprint Nextel Inc., whose bonds were climbing higher following reports claiming a merger deal with T-Mobile is in the works.

Other names climbed into higher territory on no news or catalyst at all. NII Holdings Inc. was one such name, as the company’s debt drove up as much as nearly 3 points on the day.

The KDP High Yield index held steady at 74.9, with a 5.1% yield. The CDX North American High Yield index was up just under half a point at 108 1/16 bid, 108 11/16 offered.

And market sources familiar with the fund-flow statistics generated by AMG Data Services Inc. said that $302 million more came into those funds than left them in the week ended Wednesday.

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