National Amusements Inc., the movie-theater operator and holding company controlled by billionaireSumner Redstone, is marketing debt after at least half a dozenother borrowers withdrew offerings.
National Amusements may sell $390 million of seven-yearnotes to refinance a bank credit line, according to a personfamiliar with the offering. the debt may be issued next week,said the person, who declined to be identified because termsaren’t set.
Performance Food Group Co. pulled a planned $550 milliondebt sale and WII Components Inc. withdrew a $115 millionoffering yesterday, according to people familiar with thetransactions. Burlington Coat Factory Warehouse Corp., ShipFinance International ltd., Yuzhou Properties Co. and VietnamNational Coal-Mineral Industries Group also canceled sales inthe past week.
The extra yield investors demand to own speculative-gradecorporate bonds rose 14 basis points to 604 basis points, themost in more than a month, as credit markets weakened amidgrowing concern over Europe’s debt crisis and increasingtensions in the Korean peninsula, according to the Bank ofAmerica Merrill Lynch U.S. High Yield Master II index. Yields onthe debt climbed 8 basis points to 7.89 percent.
High-yield, high-risk bonds are rated below Baa3 by Moody’sInvestors Service and less than BBB- by Standard & Poor’s. Abasis point is 0.01 percentage point.
Rain CII Carbon LLC sold $400 million of eight-year notesto lead $850 million of junk-bond issuance yesterday, accordingto data compiled by Bloomberg. High-yield sales of $1.56 billionthis week compare with $4.36 billion during the comparableportion of last week, Bloomberg data show.
Investment-grade spreads widened 2 basis points to 177basis points, according to the Bank of America Merrill LynchU.S. Corporate Master index. Average yields on the debt fell 2basis points to 3.77 percent, the index data show.
There were no investment-grade corporate bond sales by U.S.issuers yesterday, Bloomberg data show. Companies have issued$1.32 billion of the debt this week, versus $5.53 billion a weekearlier.
The following is a description of at least $2.37 billion ofpending sales of dollar-denominated bonds in the U.S.
MACQUARIE GROUP LTD., Australia’s biggest investment bank,plans to sell hybrid securities denominated in U.S. dollars tooffshore investors. the new securities will be unsecured,subordinated interests with non-cumulative distributions,Macquarie said in a regulatory filing. the Sydney-based bankwill have an option to redeem them after five years or convertthem into preference shares, it said, without specifying howmuch it aims to raise.
HONGKONG ELECTRIC CO. hired HSBC Holdings Plc, Royal Bankof Scotland Group Plc and Standard Chartered Plc to manage abenchmark sale of 10-year dollar bonds, according to a personfamiliar with the matter. the sale of the senior, unsecurednotes is expected in the near future, subject to marketconditions, the person said, asking not to be identified asdetails are private.
FIRST GULF BANK PJSC plans to sell five-year dollar-denominated bonds that may yield between 3.25 percent and 3.5percent, said three people familiar with the transaction, whodeclined to be identified because terms aren’t set. BNP ParibasSA, Citigroup Inc., Deutsche Bank AG, HSBC Holdings Plc andNational Bank of Abu Dhabi PJSC are arranging meetings withinvestors, two people said on Nov. 1. the Abu Dhabi-based lenderis rated A2 by Moody’s.
TRANSNET LTD., South Africa’s state-owned ports, rail andpipeline operator, said it may sell $1 billion worth of bonds ininternational markets to pay for expansion. Transnet has 35.2billion rand ($5 billion) of debt outstanding.
NATIONAL AMUSEMENTS INC., the movie-theater and holdingcompany controlled by billionaire Sumner Redstone, plans to sell$390 million of seven-year notes to refinance a bank creditline, according to a person familiar with the transaction whodeclined to be identified because terms aren’t set.
MURRAY ENERGY CORP. plans to sell $150 million of seven-year senior notes, the Pepper Pike, Ohio-based company said in astatement distributed by Business Wire. Proceeds may be used toexpand production capacity and preparation plan processingcapacity at certain mining operations, according to thestatement.
CYRELA BRAZIL REALTY SA EMPREENDIMENTOS E PARTICIPACOES,Brazil’s biggest homebuilder, hired Banco do Brasil SA, CreditSuisse Group AG, Itau Unibanco Holding SA and Morgan Stanley toarrange bond investor meetings, according to a person familiarwith the matter. Cyrela will meet with investors in Asia, Europeand the U.S., said the person, who declined to be identifiedbecause the conversations are private. S&P raised its rating onthe company one step to BB on Sept. 30.
DELONG HOLDINGS LTD., a Singapore-based steel trader, hiredCredit Suisse Group AG to help it organize meetings withinvestors ahead of an international sale of guaranteed seniornotes. Money raised will be used to redeem 5 percent convertiblebonds due 2012, to repay bank loans and for acquisitionsrelating to iron ore and other raw materials used by the steelindustry, the company said in a statement to Singapore’s stockexchange. the dollar-denominated notes were assigned aprovisional rating of B3 by Moody’s Investors Service, theratings company said in a note.
FLAKEBOARD CO., the Canadian producer of fiberboard andparticleboard used to build furniture and countertops, plans tosell $225 million of senior secured notes maturing in 2017, S&Psaid in a statement. the ratings company grades the proposedU.S. dollar-denominated debt as B, according to the statement.
SPENCER SPIRIT HOLDINGS INC., the mall-based retailer ofaccessory and Halloween items, plans to sell $150 million ofsenior-secured notes due in 2016, according to a person familiarwith the transaction. Proceeds may be used to repay existingdebt and make a distribution to shareholders, said the person,who declined to be identified because terms aren’t set. WellsFargo & Co. and UBS AG are managing the sale, the person said.
PT ENERGI MEGA PERSADA, Indonesia’s second-biggest listedoil company, hired Nomura Holdings Inc. to help it with a dollarbond sale, according to a person familiar with the matter whodeclined to be identified because terms aren’t set.
SI ORGANIZATION INC., the Lockheed Martin Corp. unitformerly known as Enterprise Integration Group, may sell $175million of senior subordinated notes, according to Standard &Poor’s. Proceeds may be used with $340 million of bank debt and$370 million of new common stock to pay for its acquisition byVeritas Capital, S&P said.
TRANSDIGM GROUP INC., the aircraft-components manufacturerthat’s buying rival supplier McKechnie Aerospace Holdings Inc.,plans to sell $780 million of senior subordinated notes to helpfund the acquisition, the Cleveland-based company said in afiling with the Securities and Exchange Commission. the companyis also planning a $900 million term loan and a $300 millionrevolving credit line, according to the filing. the notes wererated B3 by Moody’s.
Offerings in Pipeline
RURAL ELECTRIFICATION CORP., India’s state-controlledlender to power projects, hired Credit Agricole CIB, Royal Bankof Scotland Group Plc and Standard Chartered Plc to sell $500million of bonds. Rural Electrification aims to price 5.5-yearnotes to yield between 195 basis points and 200 basis pointsmore than similar-maturity U.S. Treasuries Finance Director HariDas Khunteta said in a telephone interview from new Delhi onNov. 10.
JORDAN is selling $750 million of five-year bonds that willbe priced to yield 4.125 percent, according to two people withknowledge of the sale. Arab Bank Plc, Credit Suisse Group AG,HSBC Holdings Plc and JPMorgan Chase & Co. are managing thesale.
AMERICAN INTERNATIONAL GROUP INC., the bailed-out insurer,plans to raise money in a debt sale as the company moves towardindependence from the U.S. government, it said in a regulatoryfiling.
PTT EXPLORATION & PRODUCTION PCL, Thailand’s only listedoil and gas explorer, plans to sell bonds denominated in U.S.dollars, according to a person familiar with the transaction.PTT Exploration hired Barclays Plc to manage the sale, said theperson, who declined to be identified because terms aren’t set.Barclays is arranging a U.S. dollar-denominated medium-term noteprogram for the company, the person said.
PTA BANK, or Eastern and Southern African Trade andDevelopment Bank, hired HSBC Holdings Plc and Standard BankGroup ltd. to arrange bond investor meetings in Europe and Asia,according to two people with knowledge of the sale. the meetingswill be held in Hong Kong, Singapore, Zurich, Geneva and London,said the people, who declined to be identified because termsaren’t set. the company may sell dollar bonds after themeetings, the people said.
MAQUINARIA ESPECIALIZADA MXO TRUST, a special-purposecompany expected to provide construction machinery services toCorporacion GEO SAB de CV, hired Banco Santander SA to arrangebond investor meetings, according to a person with knowledge ofthe sale. A dollar bond sale may follow the meetings, to be heldin London, Boston, new York and Los Angeles, said the person,who declined to be identified because terms aren’t set.
CREDIT BANK OF MOSCOW plans to sell five-year dollar bonds,according to a person familiar with the transaction. the sale ofReg S securities is being arranged by Commerzbank AG, ING GroepNV and Raiffeisen Bank International, the banker said.
DOHA BANK QSC, Qatar’s third-largest bank, hired MorganStanley and JPMorgan Chase & Co. to manage a planned $500million bond sale, its chief executive officer said. Theoffering, announced on the Qatar Exchange website, will bemarketed to investors in the U.S., Europe and the Middle East,Raghavan Seetharaman said in an Oct. 20 telephone interview.
BELARUS may sell debt in the U.S. and Asia, according toFinance Minister Andrei Kharkovets. “We will undoubtedly enterthe Asian and the American markets,” Kharkovets said in an Oct.15 interview in Moscow, declining to comment on the timing ofpossible sales.
GEORGIAN RAILWAY LLC, the former Soviet republic’s state-owned rail company, is preparing a bond roadshow in the U.S.,Giorgi Gagnidze, the company’s financial director, said incomments broadcast on Rustavi-2 television.
AL BARAKA BANK EGYPT ESC, a unit of Bahrain-based AlbarakaBanking Group, may sell dollar-denominated Islamic bonds in thesecond half of 2011, the bank’s chairman said Sept. 29. the bankhas not decided on the size of the bond, he said.
TURKIYE IS BANKASI AS hired JPMorgan Chase & Co., the RoyalBank of Scotland Plc, Standard Bank Plc and Standard Charteredto help find buyers for a planned bond sale during meetings inthe U.S. and Europe. Isbank made the announcement to theIstanbul Stock Exchange after the market regulator approved asale of 1.45 billion liras ($1.03 billion) of bonds by the bank.Isbank said the sale will be in dollars.
AEGIS LTD., an outsourcing unit of Essar Group, may sellthe first non-convertible dollar bonds from an Indianinformation technology company. the company, which boughtPeopleSupport Inc. in 2008, may sell its bonds as part of afinancing package that would include a loan of as much as $350million to consolidate debt, Chief Financial Officer C.M. Sharmasaid.
JSW STEEL LTD, India’s third-largest steelmaker, plans tosell dollar bonds for the first time in three years and asrupee-denominated finance costs rise. JSW has applied for creditratings before a possible offshore bond sale to help build a 200billion rupee ($4.3 billion) steel and power plant in WestBengal, Chief Financial Officer Seshagiri Rao said.
ARGENTINA may sell $1 billion of bonds due in 2017, ElCronista newspaper reported, without saying how it obtained theinformation. the government is also planning to offer anexchange for dollar bonds due in 2011 and 2012, the BuenosAires-based publication said.
INDONESIA plans to name three banks to help it sell about$650 million of Islamic bonds, Dahlan Siamat, director forIslamic financing at the finance ministry, said in a telephoneinterview in Jakarta. the government sold its firstinternational Islamic dollar bonds in April 2009.
URUGUAY may sell as much as $1 billion of bonds in 2011,including $500 million of dollar-denominated debt, Carlos Steneri, director of public credit at Uruguay’s Ministry ofEconomy and Finance, said June 3 at a Latin Finance conferencein London. the dollar-denominated bonds may have a maturity of20 years or more, Steneri said.
MALAYSIA plans to raise about $1 billion from its firstsale of conventional dollar bonds in eight years after drawingbids for five times the Islamic debt it offered, a financeministry official said. the government may hire banks includingCIMB Group Holdings Bhd. and HSBC Holdings Plc to arrange thesale by Sept. 30, said the official, who declined to be named asthe discussions are private. Malaysia raised $1.25 billion froma Shariah-compliant dollar bond on May 27. Malaysia is rated A3by Moody’s and A- by S&P.
GHANA is considering selling its second dollar bond in 2011to tap investor demand as the start-up of oil production boostseconomic growth and narrows the budget deficit, Deputy FinanceMinister Fifi Kwetey said. the government was considering a“no-deal roadshow” to gauge international investors’ appetite,Kwetey said in a May 26 interview in Abidjan. Ghana sold itsfirst global bond in 2007, raising $750 million to help fund theconstruction of roads and power plants.
MONGOLIA plans to raise $500 million selling bonds in 2010and the remainder of a planned $1.2 billion program will be soldaccording to market conditions, Batbayar Balgan, directorgeneral of the financial and economic policy department ofMongolia, said at a forum in Ulan Bator on June 16. Thegovernment scaled back its plans for global bond sales afterEurope’s debt crisis drove up borrowing costs. Investment banksare advising Mongolia to issue debt with maturities of 5 yearsto 10 years, Finance Minister Sangajav Bayartsogt said in a Feb.9 interview. the securities may yield 8 percent to 11 percent,he said.
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To contact the editor responsible for this story:Alan Goldstein at .
Sumner Redstone’s National Amusements Plans Debt Sale as Deals Pulled
