A quick-print issue for Lear Corp and an accelerated deal for Global Ship Lease were the focus of the high-yield primary market on Tuesday, but a pick-up in M&A financing was also a major talking point after Men’s Wearhouse and Jos. A. Bank agreed to merge.
The US$9.4bn acquisition of US retailer Safeway by Cerberus Capital Management is expected to be financed by US$7.6bn of debt, in what will be the biggest leveraged buyout since Dell and Heinz last year.
Bonds from Momentive Performance Materials have slid 65% in a matter of weeks, raising fears of a debt restructuring and dashing hopes that private-equity owner Apollo will step in to help.
- US STRUCTURED FINANCE: Busy week ahead for ABS market
- Momentive Performance bonds sink on restructuring fears
- Five drive-by high-yield issuers swoop on US market
- HCA plans US$3bn two-part high-yield bond
- JPM call on Freescale adds confusion
- US high-yield spreads grind tighter as supply drops
- P&M: AJ Murphy joins Goldman Sachs' leveraged finance team