Party City prices; Teva improves; Aleris acquired; SuperValu bought; funds off $548 million

By Paul A. Harris and James McCandless

San Antonio, July 26 – One new deal priced in Thursday’s session while guidance emerged for two new offerings in the European junk market.

Party City Holdings Inc. priced $500 million of eight-year senior notes at par to yield 6 5/8%, at the tight end of talk, and the new paper firmed in secondary trading.

Meanwhile price talk surfaced for WFS Global Holding SAS’ €660 million two-part offering of senior secured notes due 2023 while early guidance circulated in the mid-5% area for CEVA Logistics AG’s €300 million offering of seven-year senior secured notes. Both deals are expected to price on Friday.

The secondary market stayed active as attention shifted to tranches attached to companies subject to acquisitions.

Teva Pharmaceutical Industries Ltd.’s 3.15% senior notes improved, reaching the top of high yield secondary trading.

Aleris International, Inc.’s 10 ¾% senior notes jumped up on news that the company has agreed to be acquired by Novelis.

SuperValu Inc.’s 7¾% senior notes gained as that company became another subject of an acquisition Thursday.

Intelsat SA notes were mixed.

High-yield mutual funds and exchange-traded funds were in negative territory for a second week following the departure of $548 million of cash during the week ended July 25, according to statistics generated by AMG Data Services Inc.

Party City prices tight

In Thursday’s primary market Party City priced a $500 million issue of eight-year senior notes (B1/B-) at par to yield 6 5/8%.

The yield printed at the tight end of talk set in the 6¾% area.

The deal traded to 101 bid, 101½ offered shortly after terms circulated in the market, a trader said.

Goldman Sachs was the left bookrunner for the deal to refinance bank debt.

WFS Global talk

Price talk surfaced Thursday for WFS Global Holding’s €660 million of two-part offering of senior secured notes due 2023 (B3/B-) to be issued via Promontoria Holding 264 BV.

The deal features fixed-rate notes talked at 6¾% to 7% and floating-rate notes talked at Euribor plus 625 to 650 basis points.

Tranche sizes remain to be determined.

The deal is expected to price on Friday.

Also in the euro-denominated new issue market, early guidance in the mid-5% area surfaced for CEVA Logistics’s €300 million offering of seven-year senior secured notes (B1/BB-). That deal is similarly expected to price on Friday.

Meanwhile there are two dollar-denominated deals in the market.

Intrepid Aviation Group Holdings is in the market with a $515 million offering of three-year senior notes (/B/B+) via Jefferies, with early guidance in the 6¼% area. The roadshow was scheduled to wrap up Thursday.

And Hi-Crush Partners LP is marketing a $450 million offering of eight-year senior notes (B3/B-) with initial guidance in the 8½% area.

Both deals are possible Friday business although there was no word on either of them on Thursday, sources say.

Teva up

Israel-based pharmaceutical producer Teva’s 3.15% senior notes due 2026 saw gains on Thursday, topping high yield secondary volume with about $48 million of the bonds on the tape.

The notes were spotted trading up about ½ point to close at around 84½ bid.

Aleris rises

Columbus-based aluminum product producer Aleris saw its 10¾% notes due 2023 push up after Novartis, another aluminum company, made a $2.6 billion bid to purchase the company.

“It’s not a done deal yet, with the regulatory hoops to jump through,” a trader said. “But the bonds are trading like they could be redeemed soon.”

The notes rose about 2½ points to close at 106½ bid with $38 million of the bonds changing hands.

SuperValu improves

Eden Prairie, Minn.-based food distributor SuperValu’s 7¾% senior notes due 2022 jumped up on news that United Natural Foods has made a $2.9 billion proposal to acquire the company.

The notes gained about 1½ points to close at 103¾ bid with about $21 million of the bonds trading.

Intelsat mixed

Luxembourg-based satellite communications company Intelsat notes were mixed. The FCC is considering a rule change that would let mobile providers use airwaves currently used by traditional broadcasters and managed by satellite firms, potentially creating a new revenue stream for satellite firms.

Intelsat (Luxembourg) SA’s 7¾% notes due 2021 lost about ¼ point to close at around 93¾ bid. The 8 1/8% notes due 2023 picked up about ¼ point to close at around 85¾ bid.

Indexes mixed

The KDP High Yield index dropped 2 basis points to close at 70.36 on Thursday with the yield at 5.90%. The index has spent the week swinging between gains and losses of 2 bps, ending lower on Wednesday, improving on Tuesday, and falling on Monday.

For the fifteenth consecutive trading day, the Merrill Lynch High Yield index trended positive. The index was up 10.9 bps with the year to date return at 0.981%. The index entered the black on July 6.

The CDX High Yield 30 index was up 10.1 bps on Thursday to close at 107.142 after a 9.5 bps decline on Wednesday and a 16.2 bps rise on Tuesday.

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