Vivint prices add-on, Avolon megadeal on tap, Vector Group slates; new Terex bonds jump

By Paul Deckelman and Paul A. Harris

New York, Jan. 18 – High yield new-deal activity slackened on Wednesday, as syndicate sources reported that a single U.S.-dollar-denominated and fully junk-rated offering had come to market – home security services company Vivint’s quickly shopped $300 million add-on to its existing 2022 secured notes, which came to market via the company’s corporate parent entity, APX Group Holdings, Inc.

That volume was down from the $2.05 billion which had gotten done in three tranches – also drive-by offerings – during Tuesday’s session.

The sources meantime said that aircraft leasing company Avolon Holdings Ltd. was set to touch down in Junkbondland on Thursday with what is expected to be the biggest new issue seen so far this year – $3 billion of new paper, split into two evenly sized tranches of 5.5-year and seven-year notes. Price talk on the big deal emerged on Wednesday.

Also during the session, tobacco and real estate company Vector Group Ltd. announced plans for an $850 million issue of eight-year secured notes.

Secondary market traders saw active interest in the three deals that priced during Tuesday’s session – from broadband and cable operator Charter Communications, Inc., builder William Lyon Homes, Inc. and materials handling equipment manufacturer Terex Corp.

While the Charter megadeal traded around its issue price and William Lyon slightly above the level at which it came to market, the traders reported that Terex firmed smartly from its issue level and in fact easily topped the day’s Most Actives list.

© 2015 Prospect News.
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