Allison prices; new deals take focus; Anadarko dips on share repurchase; telecom falls

By Paul A. Harris and Stephanie N. Rotondo

Seattle, Sept. 21 – Allison Transmission, Inc. priced the day’s single new deal, an upsized $400 million offering of 10-year senior notes that came at the tight end of talk.

Otherwise Cincinnati Bell Inc. and Avantor, Inc. were working on deals, Cincinnati Bell setting talk on a $350 million offering of eight-year senior notes and Avantor extending marketing of its $4.25 billion three-part offering to allow for covenant changes in response to investor resistance and additional call protection.

The secondary high-yield market continued to focus on recently priced deals, though overall activity was muted given the observance of Rosh Hashana.

In terms of price moves, recent deals – such as Mattamy Group Corp.’s $500 million of 6½% notes due 2025 and Multi-Color Corp.’s $600 million of 4 7/8% notes due 2025, both of which priced on Wednesday – were little changed.

Even energy names, which saw a big run-up on Wednesday, were barely changed.

One trader said California Resources Corp.’s 8% second-lien notes due 2022 were steady at 61¼.

A second market source echoed that level, but called it ½ point lower.

Elsewhere in energy, Anadarko Petroleum Corp.’s debt was a shade weaker as the market reacted to news of a share repurchase.

There did continue to be downward pressure in the telecommunications space, specifically on Windstream Holdings Inc. and Frontier Communications Corp.

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