Metromedia Fiber Network and North American Van Lines (NAVL) will price European high yield transactions next week, while PTC and Global Telesystems will conclude premarketing of deals set for launch the week after. Although high yield investors, like those in high grade markets, are reluctant to commit new funds to the market, bankers report that deals offering value can still be priced before year end. This week's market rally will have offered borrowers further encouragement. NAVL should be first to the market, with a $250m equivalent 10 year non-call five dollar/euro transaction. The company has concluded roadshows in Europe and is currently on the road in the US. Bank of America and Chase Manhattan are leading the issue, which is part of the financing of NAVL's acquisition of Allied Pickford. Fibre optic network provider Metromedia will be raising $600m equivalent of 10 year non-call five funding via Salomon Smith Barney. The company has a $650m November 2008 bond outstanding, which recently yielded 10%, but this week tightened in towards 9.70%. The deal, set to follow US and European roadshows underway this week, received a boost when the company was upgraded by S&P from B to B+. The move was prompted by Bell Atlantic's decision last month to raise its stake in Metromedia. Moody's affirmed Metro- media's B2 rating but placed the company on positive outlook. Global Telesystems will conclude roadshows for its Eu300m seven and 10 year deal via DLJ at the end of next week. Formerly known as Hermes Europe Railtel, the company will price its transaction the following week. And Polish cellular company PTC International will conclude roadshows ahead of pricing of its Eu300m equivalent euro/dollar 10 year non-call five deal. Merrill Lynch will lead manage the offering of B2/B+ senior guaranteed notes. n
November 05, 1999
