Bristow prices upsized deal at a discount, mixed performances continue among recent deals

By Paul A. Harris

Portland, Ore., Feb. 23 – In Friday’s high-yield market, Bristow Group Inc. priced an upsized $350 million issue of 8¾% five-year secured notes at a discount.

Meanwhile, among a flurry of deals that came earlier in the week, the recently issued bonds tended to be lagging, straddling or hovering slightly above their new issue prices at week’s end.

Sprint Corp.’s new 7 5/8% senior bullet notes due March 2026 (B3//B+) were at 99 1/8 bid, 99 5/8 offered, down ¼ point on the day, after having lagged their new issue price throughout the week.

The upsized $1.5 billion issue priced at par to yield 7 5/8% in a quick-to-market trade on Tuesday, according to market sources.

The amount was increased from $1 billion.

The deal came with initial guidance of 8%, a level that fell a full 25 basis points to the 7¾% area before the deal ultimately came 12.5 bps tight to that talk at 7 5/8%. As a result, investors were squeezed to the tune of 37.5 bps.

Nevertheless, the Sprint book was heard to contain $3.5 billion of orders at 7¾%, a trader said.

Weatherford International plc’s $600 million issue of seven-year bullet notes (Caa1/B-) was above new issue price on Friday afternoon, at 99¾ bid, par offered.

The $600 million issue priced at 99.34 to yield 10% in a quick-to-market trade on Wednesday.

© 2015 Prospect News.
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