Giant Gtech prices along with Citgo megadeal; Casella adds on; busy Dollar Tree, Gtech activity

By Paul A. Harris and Paul Deckelman

New York, Feb. 9 – The high-yield primary market picked up on Monday right where it had left off on Friday, pricing a hefty chunk of new dollar-denominated, fully junk-rated paper, highlighted by a $3 billion-plus multi-tranche offering.

On Friday, that description had aptly fit deep-discount retailer Dollar Tree, Inc.’s two-part $3.25 billion offering of five- and eight-year notes. On Monday, Italian gaming technology company Gtech SpA assumed that role with a $3.2 billion three-part dollar deal, offered in tandem with a €1.55 billion two-tranche euro-denominated transaction.

Besides Gtech, Monday saw a second megadeal get done, this one from petroleum refiner and marketer Citgo Holding, Inc., which priced a $1.5 billion five-year secured deal.

Casella Waste Systems, Inc. topped things off with a $60 million add-on to its existing 2019 notes.

All told, the day’s issuance generated $4.69 billion of proceeds in five tranches.

Monday’s issuance was the heaviest so far this year, topping the $4.325 billion that had come to market in five tranches on Jan. 30, and was the biggest new-issuance day Junkbondland had seen since Oct. 10, 2014, when three issuers had priced a whopping $6.7 billion of new high-yield paper in six tranches.

The new Gtech dollar-denominated bonds traded actively when they were freed for aftermarket activity.

But the big name in the aftermarket Monday was Dollar Tree, with its two new issues generating over $150 million of activity.

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