Upsized, restructured DFC prices to cap $3.9 billion week, new bonds gain; Cascades treads water

By Paul Deckelman and Paul A. Harris

New York, June 6 – The high-yield primary sphere closed out the first week in June on Friday with just one pricing of U.S. dollar-denominated, fully junk-rated bonds – financial services company DFC Global Corp.’s $800 million six-year note offering, which came to market via a financing subsidiary after having been restructured and upsized.

Traders said that the DFC bonds firmed smartly when they were freed for aftermarket dealings.

The DFC deal raised the week’s total issuance of new junk to $3.9 billion in nine tranches, according to data compiled by Prospect News.

Traders said that many of the deals which priced earlier in the week seemed to be at least holding their own, or even better, including issues from glass and metal packaging maker Ardagh Group, natural gas pipeline operator Southern Star Central Corp. and semiconductor manufacturer Advanced Micro Devices, Inc.

However, paper packaging maker Cascades Inc.’s new eight-year notes were seen having trouble gaining any traction, trading just a little above their par issue price.

Away from the new deals, traders saw Caesars Entertainment Corp. bonds gyrating around after a bondholders group slapped the gaming giant with a notice of default, claiming it had violated the indenture governing their bonds by a controversial recent asset transfer to an affiliated entity, which the bondholders said undermined their position in the event of a possible restructuring.

© 2015 Prospect News.
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