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Invitel Sells Last High-Yield Deal Before Europe's Holiday

Invitel, Vivendi SA's former Hungarian telecom arm, last week squeezed in what is likely to be the last European high-yield deal until September as the market hits the August vacation lull.

Invitel, Vivendi SA's former Hungarian telecom arm, last week squeezed in what is likely to be the last European high-yield deal until September as the market hits the August vacation lull. Credit Suisse First Boston and BNP Paribas were marketing a E140 million, eight-year non-call four offering, due to be priced after BW went to press. August is a dead month in Europe for new-issuance, since many market professionals take several weeks of holiday. "If it's not imperative for the issuer to bring a deal in August and you don't want to pay up to get a deal away, it's best to wait out the month since investor demand is not there," said Stephane Tremelot, head of high-yield syndicate at BNP Paribas in London.

The other European high-yield deals that are either rumored or mandated, including Ask/Pizza Express, Dynamit Nobel, Editis, Grohe, IT Holding and Vendex, will not be brought to market until September, according to syndicate officials leading those deals.

The extended summer lull appears to be a strictly European phenomenon. The U.S. high-yield market has 15 deals worth more than $5 billion in the pipeline, with roadshows scheduled through mid-August, said Christopher Garman, head of high-yield strategy at Merrill Lynch in New York.

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