TransAlta drives-by; Ahern skyrockets on buyout; Carnival hits new heights

By Paul A. Harris and Abigail W. Adams

Portland, Me., Nov. 14 – Calgary-based TransAlta Corp. priced Monday's sole deal, a $400 million issue of green senior notes (Ba1/BB+) that came at par in a drive-by.

The yield printed at the tight end of talk and was heard to have come into market on the back of reverse inquiry amounting to twice the offer size, according to a sellside source.

Meanwhile, the secondary space opened the week on soft footing with the cash bond market swinging from positive territory at the open to negative territory by the close.

The cash bond market was up ¼ point at the open but ended the day down 1/8 point, sources said.

While the market moved from positive to negative territory, volatility was low with the distance between the intraday peak and trough narrowing, a source said.

Trading volume was also thin as activity in new and recent deals waned.

Ahern Rentals, Inc.’s 7 3/8% senior notes due 2023 were the major winners of Monday’s session with the notes skyrocketing almost 30 points following news United Rentals will acquire the company.

Carnival Corp.’s 10 3/8% senior priority notes due 2028 (B2/B+) continued their upward momentum despite the pullback in the broader market with the notes hitting their highest level since pricing.

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