NEW YORK: Opportunistic borrowers leapt into the US high-yield bond market on Monday, with 11 new deals announced and three benchmark issues totaling USD2.4bn pricing by the close of play.
The bulk of the pipeline is refinancings, and concentrated at upper end of the ratings spectrum.
"That's what you would expect when you see more stability in the market," said one high-yield DCM banker.
Dell Inc.'s long-awaited acquisition bond priced as expected today, but bond investors lost out after the size was trimmed for the second time in favor of an upsized loan. On Friday, the second lien bonds were scrapped completely following better-than-expected demand for the leveraged loans.
The issuer's first lien bond was reduced by USD500m to USD1.5bn on Monday. The deal priced at the mid-point of price talk at 5.625% via left lead Credit Suisse, and rose on the break to 100.25-100.75 from its par pricing.
Barclays, Bank of America Merrill Lynch, RBC and UBS were also joint bookrunners on the Dell bond.
The loan was increased to USD7.1bn, while the overall debt package financing the management buyout was reduced by USD150m thanks to additional cash generated since quarter end.
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