Tibco, CDW, MGM add-on price; new CDW paper busy; KLX bonds flying high; market firmer

By Paul Deckelman and Paul A. Harris

New York, Nov. 24 – The high-yield primary sphere kicked off the final week of November on Monday with a trio of new deals collectively worth some $1.6 billion, with most of the day’s issuance coming out the technology sector.

Tibco Software Inc. came to market with a restructured $950 million offering of seven-year notes as a regularly scheduled forward-calendar deal. Those bonds priced too late in the session for any real aftermarket activity.

But there was plenty of secondary trading in one of the day’s other deals as CDW Corp. priced a quick-to-market $575 million of 10-year notes via a pair of financing subsidiaries. The new bonds were the most actively traded junk issue of the day, holding near their issue price.

Monday also saw MGM Resorts International do a smallish, quickly shopped add-on tranche to the more than $1 billion offering of 2023 notes that it priced last week.

Those original MGM bonds meantime were seen having pushed up to around 1 point above their issue price.

There was also brisk trading at higher levels in facilities maintenance and building supply provider HD Supply Holdings Inc.’s new seven-year paper that priced on Wednesday.

However, the biggest gainer among recently priced offering was Friday’s eight-year megadeal from KLX Inc., the company being spun off by B/E Aerospace, Inc. Those bonds gained altitude on heavy volume.

Traders saw generally firmer levels on everything.

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