Upsized Multi-Color, Mattamy deals, Gogo price; new bonds firm; energy names up

By Paul Deckelman and Paul A. Harris

New York, Sept. 20 – The pace of activity in the high-yield primary arena quickened on Wednesday, as three issuers combined for $1.2 billion in three tranches, roughly double Thursday’s $625 million of U.S. dollar-denominated and fully junk-rated notes in three tranches.

There was a pair of regularly scheduled forward calendar offerings, each of which was upsized – label-maker Multi-Color Corp.’s $600 million of eight-year notes and Canadian homebuilder Mattamy Group Corp.’s $500 million of eight-year paper. The latter company also did a tranche of Canadian-dollar-denominated eight-year notes.

After those deals priced, secondary market traders saw both new issues firm smartly, in active aftermarket volume.

Topping off the day’s deals, Gogo Intermediate Holdings LLC, a provider of wireless services to the airline industry, did a quickly shopped $100 million add-on to its existing $590 million of 2022 secured notes.

The traders meantime saw considerable activity in Tuesday’s issue of eight-year notes from solid-waste management firm Waste Industries; the bonds remained well above their par issue price.

They also quoted machinery supplier JPW Industries, Inc.’s seven-year issue of senior secured paper, which priced on Tuesday, as trading well above its par issue price.

Away from the new issues, the traders saw energy names such as California Resources Corp., EP Energy Corp. and MEG Energy Corp. moving higher, in line with solid price gains for crude oil.

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