Four deals worth US $2.545bn priced in the US high-yield market on Thursday. That brings the total in the US high-yield primary market to 24 deals in 27 tranches for US $10.985bn, marking one of the busiest weeks ever in terms of number of deals. The busiest weeks occurred in August and November 2010, at 29 deals each for a volume of US $15.4bn and US $11.2bn respectively.
Fashion jewellery and accessories retailer Claires Stores Inc launched another drive-by deal, pricing a new USD320m seven non-call three senior notes offering at 7.75% at par - the tight end of 7.75% to 8% talk. Moody's and S&P rated the bonds Caa2 and CCC. The deal has an IPO call at 103.0 after 18 months if a qualified IPO occurs. Earlier this month, the private equity-backed company filed with regulators to raise up to US $100m in an initial public offering of its common stock.
Claire's, which was taken private by Apollo Management LP for about US $3.1bn in 2007, said it intends to list its stock on the New York Stock Exchange under the symbol "CLRS". Goldman Sachs, Credit Suisse, J.P. Morgan, RBC and Apollo acted as joint bookrunners on the sale, which will be used to redeem the company's 9.25% senior notes due 2015 and its 9.625%/10.375% senior toggle notes due 2015. Claire's was last in the market in March when it launched a USD210m senior secured 1st lien notes offering due 2020.
Elsewhere in the market, packaging company Ball Corporation upsized its USD600m 10.5-year bullet note to USD1bn. Proceeds will be used to tender its 7.125% senior notes due 2016 and repay borrowings under its revolving credit facilities. The deal priced at 4% at par, on the tight end of 4.125% area talk.
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