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Numericable pulls off record junk-bond issuance

  • In what may or may not end up being a bell-ringer of a deal, French cable company Numericable finalizes its record €7.9B junk bond offering, reportedly pricing the yield even lower than the initial whisper numbers. The size blows past the previous record - Sprint's $6.5B issuance last year.
  • This deal is spread over €2.25B of euro-denominated paper, $7.75B of dollar-denominated, and across three tranches of varying maturities.
  • RBS's Albert Gallo: “The new deal highlights strong growth in the European high-yield bond market, which has grown fivefold over the past five years to nearly €300B . . . Despite the strong supply, we expect European high-yield spreads to continue to tighten over the year, on recovering growth, easy ECB policy, stable fundamentals and low default rates.”
  • The proceeds are to be used to fund Altice's (Numericable's parent) purchase of Vivendi's telecoms business.
  • Previously: Largest junk-bond deal ever on tap
  • ETFs: HYG, JNK, HYLD, HYS, SJNK, PHB, SJB, HYHG, IHY, ANGL, HYXU, PGHY, HYLS, UJB, XOVR, THHY, YPRO, SHYG, QLTC, IJNK, HYND, HYZD
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