Tibco prices $4 billion to yield 10%; secondary trading in junkland down ¼ point

By Paul A. Harris and Abigail W. Adams

Portland, Me., Sept. 20 – Tibco Software Inc. priced a $4 billion issue of 6½% senior secured notes (B2/B) at 83.561 to yield 10% late Tuesday, in a deal that was closely watched and long awaited.

Meanwhile, the secondary space gave back its gains from Monday’s session with the cash bond market down ¼ point as the Federal Open Market Committee meeting commenced.

Treasury yields resumed their climb with the two-year and 10-year reaching multiyear heights while remaining steeply inverted.

While the overall market was lower, topical news exacerbated the selling pressure in certain names.

Embarq Corp.’s (Lumen Technologies Inc.) 7.995% senior notes due 2036 (Ba2/BB) continued to see outsized losses with the notes falling another 8 points after leveraged buyout financing for some of Lumen’s assets were announced.

Ford Motor Co.’s 6.1% senior green notes due 2032 (Ba2/BB+) sank to a new low after the automaker downwardly revised its earnings forecast.

Home Point Capital Inc.’s 5% senior notes due 2026 (Caa1), a small, illiquid issue, were weaker in active trading on Tuesday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.