Morning Commentary: Faurecia launches €700 million notes at 2 5/8%; recent deals near issue prices

By Paul A. Harris

Portland, Ore., Feb. 22 – Faurecia SA launched €700 million of seven-year senior notes (Ba1/BB+/BB+) at par to yield 2 5/8% on Thursday morning.

The deal, announced Wednesday at benchmark size and talked earlier Thursday with a 2 5/8% coupon in a size range of €500 million to €700 million, is set to price later on Thursday.

Societe Generale will bill and deliver and is a joint global coordinator and joint bookrunner with BNP Paribas and Natixis.

Hovering near issue prices

Meanwhile the dollar-denominated primary market remained quiet on Thursday morning after a burst of drive-by issuance earlier in the week.

First Quantum Minerals Ltd. brought an upsized $1.85 billion (from $1.5 billion) two-part deal (B) on Tuesday.

The new First Quantum 6½% senior notes due March 2024 ($850 million) and the 6 7/8% senior notes due March 2026 ($1 billion), both of which came at par, were lagging the new issue prices on Thursday morning, a trader said.

Both were 99 3/8 bid, 99 7/8 offered, the source added.

The new GFL Environmental Inc. 5 3/8% senior notes due March 2023 (B3/B-) were turning in a better secondary market performance on Thursday morning at par bid, par ¾ offered.

The deal priced Wednesday at par in a $400 million issue.

The Sprint Corp. 7 5/8% senior bullet notes due March 2026 (B3//B+) were lagging the new issue price at 99½ bid, par offered on Thursday morning.

The par-pricing Tuesday deal, upsized to $1.5 billion from $1 billion, played to a big book enabling the dealers to tighten the screws, sources say.

Pricing discussions on Sprint began at 8%.

And Weatherford International plc's new 9 7/8% senior bullet notes due March 2025 (Caa1/B-) were above new issue price at 99½ bid, par offered on Thursday morning.

The $600 million issue priced at 99.34 to yield 10% on Wednesday.

As with all of the present week's business to date, the above-mentioned bonds were priced drive-by style.

Only one dollar-denominated offering is presently on the road.

Bristow Group Inc. is expected to price $300 million of five-year senior secured notes Friday afternoon.

The Credit Suisse deal is in the market with early guidance of 9% to 9½%, a trader said.

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