Patagonia Holdco plans roadshow; Carvana notes up; Gap paper improves

By Cristal Cody and Paul A. Harris

Tupelo, Miss., July 18 – No dollar-denominated high-yield bond deals priced on Monday, extending to the junk bond market's summer issuance drought to eight sessions. (The last deal to price was Neogen on July 6.)

However there was news on Monday.

Patagonia Holdco LLC plans to run a roadshow for a $500 million offering of seven-year senior secured first-lien notes (S&P: B+) supporting the buyout of Lumen Technologies' Latin American operations by Stonepeak.

Initial guidance indicates that the issuer is attempting to place paper that would pay a 7½% coupon and contemplates an original issue discount of 86.

Meanwhile, junk retail paper was on the mend in active trading over the session.

Carvana Co.’s paper went out about ¾ point to more than 1 point higher on the day.

Gap Inc.’s 3 7/8% senior notes due 2031 (Ba3/BB) clawed back 2¼ points in active trading Monday after ending last week down 4½ points.

Gap’s credit default swaps spreads were more than 100 basis points wider in the prior week.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.