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Bway Holding Plans Debt as Credit Market Thaws: New Issue Alert

Bway Holding Co., the paint-container and aerosol-can maker being acquired by Madison Dearborn Partners LLC, is marketing debt as high-risk, high-yield debt prices rebound after plunging last week.

Bway Holding plans to sell $200 million of notes to help pay for its acquisition, according to a person familiar with the offering. It is also seeking $565 million in bank debt, said the person, who declined to be identified because terms aren’t set.

The extra yield investors demand to own speculative-grade debt narrowed 22 basis points yesterday, partially reversing last week’s increase of 86 points, the most since the period ended March 6, 2009, according to Bank of America Merrill Lynch index data. Junk bonds rallied after European Union and International Monetary Fund officials announced a bailout designed to stem the spread of Greece’s debt crisis.

“Relief provided by this bailout program acted like a release valve, allowing risky assets to rebound sharply,” wrote Guy LeBas, chief fixed income strategist at Janney Montgomery Scott LLC in Philadelphia, in a note to clients.

Spreads on debt rated below Baa3 by Moody’s Investors Service and BBB- by Standard & Poor’s ended at 625 basis points, according to the Bank of America Merrill Lynch U.S. High-Yield Master II Index. A basis point is 0.01 percentage point.

Governments of the 16 countries that use the euro agreed yesterday to lend as much as 750 billion euros ($959 billion) to countries under attack from speculators. The European Central Bank will also begin buying government debt, EU Economic and Monetary Commissioner Olli Rehn said.

Investment-Grade Spreads

Investment-grade corporate bond spreads tightened 7 basis points to 177 basis points, according to the Bank of America Merrill Lynch U.S. Corporate Master Index. They rose to 184 basis points, the highest in more than two months, on May 7, the index data show.

Xcel Energy Inc., owner of utilities in eight U.S. states, sold $550 million of notes due in 2020 to lead $1.15 billion of investment-grade corporate bond sales in the U.S. yesterday. Xcel Energy boosted its offering by $50 million from $500 million, according to a person familiar with the transaction who declined to be identified because the marketing was private.

There were no U.S. high-yield bonds issued yesterday, Bloomberg data show.

Madison Dearborn Partners’ acquisition of Bway Holdings was valued at about $915 million, according to a regulatory filing. The Chicago-based private equity firm said it will pay $20 in cash for each share of Bway Holdings’ common stock, according to a March 29 statement.

Yesterday’s sales compare with $263 million of investment-grade issuance and no high-yield sales a week earlier, Bloomberg data show. Sales for all of last week, $2.15 billion, were the lowest this year, the data show.

Following is a description of $8.14 billion of pending sales of dollar-denominated bonds in the U.S.

Investment Grade

CHILE plans to sell $1 billion of dollar-denominated 10-year bonds, along with its debut sale of peso securities,

DOHA BANK QSC, Qatar’s third-largest bank, plans to sell

FORETHOUGHT FINANCIAL GROUP INC. plans to sell $150 million of 10-year bonds, according to a person familiar with the transaction, who declined to be identified because terms aren’t

TRANSNET LTD., the South African state-owned transportation company, plans to sell U.S. dollar-denominated debt in a benchmark offering, according to a person familiar with the transaction. Transnet said in February that it planned to sell $2 billion of international debt to help fund infrastructure. Barclays Capital and Goldman Sachs Group Inc. are joint

Not Rated

INTERNATIONAL CONTAINER TERMINAL SERVICES INC., the Philippines’ largest port operator, plans to sell as much as $200 million of 10-year bonds, according to a person familiar with the matter. The company said in a regulatory filing it will

The PROVINCE OF CORDOBA, Argentina, plans to sell as much as $350 million of bonds in international markets once the

SENSIENT TECHNOLOGIES CORP. said it entered into an agreement with a group of four financial institutions for the issuance of $110 million in fixed-rate, senior notes, according to a Nov. 19 statement distributed by Business Wire. The company plans to issue seven-year debt in May with a fixed coupon rate

High Yield

INVENTIV HEALTH INC., the provider of sales and marketing services to science companies that is being acquired by Thomas

CITGO PETROLEUM CORP., a U.S.-based unit of Petroleos de

MYLAN INC., the maker of generic drugs, said it plans to sell $1 billion of senior notes due in 2017 and 2020. Proceeds from the offering will be used to pay a portion of outstanding term loans, the Canonsburg, Pennsylvania-based company said in a

WIRECO WORLDGROUP INC. plans to sell $275 million of senior notes, the company said in a statement distributed by PR Newswire. Proceeds from the sale will be used to repay debt

OMNICARE INC., the provider of pharmacy services for U.S. nursing homes, plans to sell $300 million of bonds, the company said. Proceeds from the sale of the senior subordinated notes will be used to buy back $225 million of debt due in 2013 and

KRATOS DEFENSE & SECURITY SOLUTIONS INC. may sell $200 million of seven-year notes, according to a person familiar with the offering. Proceeds from the sale may be used to pay for the acquisition of Gichner Holdings Inc. and for general corporate

MCE FINANCE LTD., a unit of Melco Crown Entertainment Ltd.,

HILLMAN COS. plans to sell $150 million of senior unsecured notes in connection with Oak Hill Capital Partners’ acquisition of the company, according to a statement. Oak Hill is acquiring

AMERICOLD REALTY TRUST, the operator of temperature- controlled warehouses owned by billionaire Ron Burkle’s Yucaipa Cos., plans to sell $325 million of 10-year notes, according to a person familiar with the transaction. Proceeds from the sale of senior secured debt will be used to purchase assets from Versacold International Corp., said the person, who declined to be identified because terms aren’t set. Yucaipa owns 49 percent of Versacold with an option to purchase the rest, according to

RENAISSANCE CAPITAL, the commercial banking arm of Renaissance Group, is selling $225 million of three-year bonds with a 13 percent coupon, according to a banker with knowledge

LEARNING CARE GROUP NO. 2 INC. is planning to sell $265 million of payment-in-kind notes that can pay interest in the form of additional debt, according to a person familiar with the transaction. The company plans to issue five-year senior secured notes, of which 10.5 percent can be paid in cash and 2.5 percent

COMMUNITY EDUCATION CENTERS INC. plans to sell $210 million of six-year, senior secured notes that may yield 12.75 percent to 13 percent, according to a person familiar with the offering. The notes, which can’t be called for the first 3 1/2 years, will be sold in a private placement, said the person familiar with the transaction. The company, which initially planned to sell the debt in a 144A transaction, will borrow the money through a

PT CILIANDRA PERKASA, an Indonesian palm-oil company, may

AO ASTANA FINANCE will offer senior creditors $350 million of new bonds, as well as recovery notes and 58.9 percent of voting shares, the lender said in a statement published through the Kazakhstan Stock Exchange. Holders of Astana Finance’s domestic notes will be offered 20-year tenge-denominated bonds

Offerings in Pipeline

JONES APPAREL GROUP INC. postponed an offering of $250 million of senior notes due 2018. The New York-based retailer is paying $180 million for a 55 percent stake in Stuart Weitzman Holdings LLC, a closely held maker of women’s apparel, according to a May 6 statement distributed by PR Newswire. Proceeds from the notes sale will be used for general corporate purposes and to help fund the acquisition, the company said. Citigroup Inc.,

ESSAR STEEL HOLDINGS LTD. postponed a sale of dollar-denominated bonds amid rising investor concern over contagion from Europe’s debt crisis. Essar “decided to postpone their

BANCO CRUZEIRO DO SUL SA postponed an offering of 10-year

RENHE COMMERCIAL HOLDINGS CO., a developer of underground shopping malls in China, postponed an offering of five-year dollar bonds due to market conditions, according to a person familiar with the matter. Renhe, which will continue to monitor

CHINA ORIENTAL GROUP CO. plans to sell senior notes to provide working capital and the possibly to finance the purchase of steel mills and iron ore assets in China. Deutsche Bank AG

DSW HOLDINGS INC., a unit of DS Waters Enterprises LP, postponed a $475 million sale of senior secured notes due in

OAO SBERBANK hired DZ Bank AG, JPMorgan Chase & Co. and

TPG CAPITAL is planning to sell high-yield bonds to back its purchase of American Tire Distributors Holdings Inc., according to people familiar with the financing. Bank of America Corp. is leading both the asset-based loan and the bond

BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM received approval from the central bank to issue 7 trillion dong ($369 million) of notes and another 3 trillion dong ($158 million)

METINVEST HOLDING LLC, Ukraine’s largest steelmaker, plans to sell dollar-denominated bonds in its first offering of international debt, according to a person with knowledge of the transaction. The Donetsk-based company controlled by Ukrainian billionaire Rinat Akhmetov appointed BNP Paribas SA, Credit Suisse Group AG, ING Groep NV, Royal Bank of Scotland Group Plc

BOLIVIA plans its first international bond sale in more

GLORIOUS PROPERTY HOLDINGS LTD. postponed its first sale of dollar-denominated bonds, citing unfavorable market conditions. The postponement was disclosed in an e-mailed statement by an external spokeswoman for the Hong Kong-based bank. Glorious Property had planned to sell five-year bonds denominated in U.S. dollars, according to a person familiar with the matter, who declined to be identified before a public announcement. Glorious

FIRSTRAND LTD., South Africa’s second-largest banking group, said it postponed a planned sale of dollar bonds because of volatile market conditions. The sale may now take place later

KOREA FINANCE CORP. plans to sell $100 million to $200 million of foreign-currency bonds in its first overseas debt sale since October, Edaily reported, without citing anyone. The state-run agency also plans to sell $1 billion of global bonds

NATIONAL AGRICULTURAL COOPERATIVE FEDERATION of South Korea, also known as Nonghyup, plans to raise as much as $500 million from foreign-currency bonds to repay debt, according to a person with direct knowledge of the matter. The federation, which provides credit and banking services to farmers, plans to sell notes to help refinance about $600 million of bonds and loans, said the person, who asked not to be named as the plan is

PTT PRODUCTION & EXPLORATION PCL, the Thai oil explorer, hired Credit Suisse Group AG and Royal Bank of Scotland Group Plc to help it sell global bonds, according to two people

UNION BANK OF INDIA LTD. plans to sell bonds denominated in U.S. dollars, according to a person familiar with the matter.

MALAYSIA may sell 10-year dollar denominated bonds in June, its first overseas debt offering in almost eight years, according to a finance ministry official with knowledge of the plan. The amount of notes to be offered will be in the region of

POWER SECTOR ASSETS AND LIABILITIES MANAGEMENT CORP. of the Philippines sell between $750 million and $1.5 billion of dollar-denominated bonds “anytime” to help refinance maturing debt thru next year, Vice Chairman Jose Ibazeta said. The

BRISBANE AIRPORT CORP., owner of Australia’s third-busiest airport, may sell bonds in the U.S. later this year as it pursues new markets to help refinance debt and pay for a new runway. The company is considering a 10- or 15-year U.S. private placement and a five- to seven-year Australian dollar bond sale

VIETNAM NATIONAL COAL-MINERAL INDUSTRIES GROUP, the state-owned coal producer known as Vinacomin, plans to sell as much as $500 million of bonds overseas this year to fund mining and

FINLAND may sell five-year bonds denominated in dollars

POLAND may sell around $1 billion of five-year dollar bonds in May “at the earliest” and yen-denominated debt by the end

MONGOLIA plans to sell as much as $1.2 billion of bonds overseas this year to fund infrastructure to support its mining industry, Finance Minister Sangajav Bayartsogt said. This is Mongolia’s first benchmark offering of dollar-denominated debt. Investment banks are advising Mongolia to issue debt with maturities of between five and 10 years, Bayartsogt said in an

BIRCH COMMUNICATIONS INC. is offering $100 million of senior secured notes due in 2015, with proceeds going toward refinancing debt, buying outstanding warrants for its common stock and general corporate purposes, including acquisitions, the Atlanta-based company said Nov. 30 in a statement. On Feb. 1, Moody’s withdrew its B3 rating assigned to the company’s notes, citing “recent indications” that Birch “will complete its note issuance under terms that are different than those that supported the rating assignment,” analysts Gerald Grnovsky and Russell Solomon wrote in a note. Birch is rated B- by S&P, the ratings company wrote Dec. 4 in a statement. “We’re currently holding discussions with interested parties and expect to finalize our offering in the near term,” Greg Corwin, director of marketing for Birch, said in a Jan. 11 telephone interview. Corwin said the status of the deal was “unchanged” in a Feb. 17 interview.

(Updated Feb. 17.)

VIETNAM SHIPBUILDING INDUSTRY GROUP, the state-owned company known as Vinashin, won government approval to sell as much as $600 million of bonds overseas to fund construction of ships. Vinashin plans to raise between $400 million and $600 million in a dollar-denominated bond sale “with a government

ALROSA, Russia’s diamond monopoly, may sell as much as $1 billion in foreign-currency bonds in the second half of 2010,

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