Sprint puts jumbo deals back on high yield map

Fri Sep 6, 2013 10:43am EDT
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* Sprint's USD6.5bn high yield bond second largest on record

* More issuers expected to burst onto scene next week

* Concessions could rise if Verizon reprices market

By Joy Ferguson

NEW YORK, Sept 6 (IFR) - US wireless giant Sprint eradicated any fears of lackluster demand for high yield debt this week with a USD6.5bn deal that was more than triple the size the issuer had hoped to raise and reminiscent of jumbo deals seen in pre-crisis days back in 2007.

The bond, heard to be coming since July, was well-timed, hitting the market quickly after the August slowdown and before an expected mammoth transaction from higher-rated Verizon which has the potential to reprice the entire telecom sector.

According to Thomson Reuters SDC/IFR data, Energy Future Holdings' USD7.445bn offering, priced and distributed in late 2007, was the largest deal on record, which puts Sprint's transaction in second place.

It is also easily the largest high-yield transaction year-to-date, beating both MetroPCS Wireless' and Intelsat's USD3.5bn bonds which priced in March.

Sprint's deal, which will fund its capital expenditure plans and refinance debt, has boosted confidence that other issuers in a busy pipeline for September, heard to be as high as USD35bn, will be equally well received.   Continued...