The last two weeks have not been altogether friendly to high yield bond issuers, as LCD’s Joy Ferguson reports. Bankers responded to softer conditions by widening price talk on a number of deals, helping to spur demand, although sources say most still were not well oversubscribed.
Four issues were postponed, with arrangers citing “market conditions” according to Ferguson:
September 11: Australian media company APN News & Media withdrew a $250 million debut offering despite “significant investor interest”; citing terms and conditions not satisfactory to the firm.
September 12: Capstone Mining withdrew its $300 million debut offering. The company said that “due to general market conditions” it would discontinue to offering that would have opportunistically repaid borrowings under its existing credit facilities because the “proposed interest rate exceeds what we were prepared to pay for that purpose."
September 12: Vistaprint postponed its $250 million debut offering, backing debt repay. "Given current volatility in debt markets, we prefer to postpone our offering at this time. We will potentially revisit an offering in the future if market conditions become more favorable."
September 16: Tower International (Cerberus Capital –controlled, NYSE-listed: TOWR), postponed its $250 million offering in a financing effort that was deemed opportunistic. Tower has been absent from the primary market since August 2010.
Of note was Jupiter Resources, retuning to market to fund an acquisition of Bighorn assets from Encana, after postponing an effort in early August. The deal saw pushbacks and delays, and terms were finalized Sept. 11 wide of talk amid the week’s heavy market conditions.
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