By Joy Ferguson
April 3 (IFR) – Crown Castle was the lone issuer coming to
the US high-yield space on Tuesday, as the market took a
breather on the heels of its largest-ever quarter by volume.
On day two of Q2 2012, Crown Castle was expected
with a $1bn 10-year non-call five senior notes offering through
Morgan Stanley, BofA Merrill, RBS, SunTrust Robinson Humphrey,
Toronto Dominion, Barclays, Credit Agricole, JP Morgan, RBC,
Citigroup, Deutsche Bank and Mitsubishi UFJ Securities joint
books.
Proceeds will be used to fund the tender offer for the
company’s US$861m 9% senior notes due 2015 and for general
corporate purposes. Whispers have been heard at 5%-5.25%. Crown
Castle owns, operates and leases towers and other infrastructure
for wireless communications.
Meanwhile Cengage Learning Acquisitions was expected to
price its offering later today through JP Morgan, Deutsche Bank,
Morgan Stanley, RBC and UBS joint books. Leads upped the
eight-year non-call four first lien senior secured deal to
US$650m-US$700m (from an original size of US$575m that was then
decreased to US$525m).
Talk is also revised to 11.50%-11.75% from earlier talk of
12% area. Whisper levels were originally heard in the low 9%
area.
The increase in proceeds will be used to repurchase or
otherwise repay first lien debt as permitted by the terms of the
senior secured credit facilities; otherwise it will be used for
general corporate purposes, including the repayment of unsecured
debt. The original proceeds will be used to repay the term loan
B.
Elsewhere in the market, Heckmann’s US$250m six-year
non-call three senior notes are expected to price Wednesday at
9.25%-9.50% price talk via Jefferies, Credit Suisse and Wells
Fargo joint books.
In the secondary market, the CDX HY18 is up a quarter of a
point at 97.1875-97.3125.
U.S. Treasuries……….
U.S. Treasury outlook…
U.S. corporate bonds….
U.S. agencies………..
U.S. mortgage-backeds…
U.S. asset-backeds……
U.S. municipal bonds…
(Reporting by Joy Ferguson; Editing by Marc Carnegie)
