CORRECTED-US CORP BONDS-HY MIDDAY: Market comes back with 3 new deals
(Corrects 17th paragraph to clarify use of proceeds in Clean Harbors deal)
By Ciara Linnane
NEW YORK (Frankfurt: A0DKRK - news) , Nov 28 (IFR) - Activity in the US high-yield market picked up on Wednesday with three new deals being announced, including a USD500m offering from crossover credit Ally Financial.
"The market seems to have shaken any residual affects of a turkey food coma," RBS (LSE: RBS.L - news) analysts said in a note.
Volume has been subdued for most of this week as concerns about the fiscal cliff, the name given to the automatic expiry of tax cuts and spending measures in January if Congress fails to avert them, kept issuers on the sidelines.
Ally Financial, the former GMAC (NYSE: GOM - news) , announced plans to issue USD500m of three-year senior notes via Citigroup (NYSEArca: BUW - news) , Barclays (LSE: BARC.L - news) , Deutsche Bank (Xetra: 514000 - news) and Goldman Sachs (NYSE: GS - news) joint books.
Proceeds of the deal will be used for general corporate purposes, including the retirement of existing debt. Pricing is expected later on Wednesday with initial guidance of Treasuries plus 337.5 basis points (bp) area.
Israel's Altice Financing SA & Altice Finco SA announced a USD1.09bn equivalent deal in dollars and euros to partly finance the purchase of the 31% stake in HOT Telecommunication Systems Ltd it does not already own.
HOT is Israel's sole cable TV operator. Altice will also use proceeds to refinance USD224.2m of debt at its Cool Holding unit and to refinance USD484.6m of bank debt at HOT.
The company is issuing USD700m equivalent in seven-year non-call three senior secured notes and USD390m of eight-year non-call four senior notes.
Goldman Sachs, HSBC (LSE: HSBA.L - news) and Morgan Stanley (Dusseldorf: 653571.DU - news) are joint bookrunners, with BNP Paribas (Other OTC: BNPQF.PK - news) , Credit Agricole (Milan: ACA.MI - news) , Credit Suisse (NYSEArca: CSMA - news) , ING and JPMorgan acting as co-managers.
A roadshow will kick off in the US on Thursday and in Europe (Chicago Options: ^REURUSD - news) on Dec 5.
From Ireland, syncreon Global (Chicago Options: ^RJSGTRUSD - news) , a logistics and supply c! hain serv! ices provider, announced a USD100m add-on to its 9.50% senior notes due May 1, 2018.
The deal is expected to price later on Wednesday via JPMorgan sole book.
Alere Inc, Dycom Investments Inc and Clean Harbors (Berlin: CH6.BE - news) are expected to price previously-announced deals later on Wednesday.
Price talk of 7%-7.25% is out on Alere (Berlin: IM5.BE - news) 's USD450m 5.50-year non-call three senior note deal via Jefferies, Goldman Sachs and Credit Suisse joint books.
Dycom is selling USD90m in an add-on to its 7.125% senior subordinate notes due 2021 via Goldman Sachs and Bank of America (NYSE: IKJ - news) Merrill Lynch (NYSE: MER - news) joint books.
Environmental services company Clean Harbors is planning a USD550m offering of 8.5-year non-call four senior notes via Goldman Sachs and Bank of America Merrill Lynch joint books, and Credit Suisse as co-manager.
Proceeds will be used along wit! h a commo! n stock offer on 6m shares via Goldman Sachs sole bookrunner to finance the USD1.25bn purchase price for Safety-Kleen Inc
Finally, Sequa Corp, which makes spare parts and coatings for the airline industry and other industries, has commenced a cash tender offer for its USD500m 11.75% senior notes due 2015 and its USD258m 13.5% senior PIK notes due 2015.
The tender is subject to financing, in the form of a USD1.3bn term loan, a USD200m revolver and USD$400m of senior notes.
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 Ciara Linnane; Editing by Stephen Carter)