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Mineral Resources, Carvana price; Twitter softens; NCR down
By Paul A. Harris and Abigail W. Adams
Portland, Me., April 27 – Amid tumult involving its recently disclosed earnings and its steadily tumbling share price Carvana Co. came with a big surprise Wednesday as it massively upsized what had been heard to be a struggling junk-bond deal, market sources said.
The Tempe, Ariz.-based online car retailer priced an upsized $3.275 billion issue (from $2.275 billion) of eight-year senior notes (Caa2/CCC) at par to yield 10¼%, on top of talk and in the middle of the 10% to 10½% early guidance.
Just as it appeared the company would not be able to get the deal done south of 11%, Apollo Global Management Inc. agreed to take down $1.6 billion of the deal at 10¼%, sources said.
Early trading levels seemed to bear out some misgivings, as the new notes traded down on the break, according to the sellside source who had them, generically, at 99 1/8 bid, 99½ offered.
Elsewhere, Australia-based Mineral Resources Ltd. priced an upsized $1.25 billion amount (from $1 billion) of senior notes (Ba3/B+/BB) in two tranches.
In the secondary space, Twitter, Inc.’s senior notes (Ba2/BB+) were softer in active trading on Wednesday as questions arose about the financing of Elon Musk’s takeover of the company.
NCR Corp.’s capital structure was under pressure after disappointing earnings with the ATM kiosk provider’s senior notes falling 2 to 3 points.
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