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Guitar Center bonds dip on entry into trading mart; Jefferies Finance, Calument

guitar center logoWednesday’s rush of issuance totaling $5 billion from nine credits was met with mixed interest in the secondary market on the break. Most were met with follow-on demand, like Jefferies Finance 6.875% notes due 2022, which were wrapped around 101, from par issuance, but for the first time in weeks there were laggards, such as Calumet Specialty Products 6.5% notes due 2021, which slipped to 99.5/100, also from par pricing, sources said.

Guitar Center’s two tranches followed suit. The 6.5% secured notes due 2019 and 9.625% unsecured notes due 2020 were both pegged at 98.5/99 this morning, from 98.9 at offer apiece, according to sources. Bank of America led the bookrunner quartet, with issuance under Rule 144A for life. As reported, the deal is part of a broad recapitalization effort whereby vintage-2007 buyout loans and some bonds held by Ares Management are repaid in full, a portion of cash-pay opco bonds are swapped into equity, and all holdco PIK notes are swapped into holdco equity.

Warner Music 5.625% secured notes due 2022 edged up to 100.25/100.75, from par pricing, while a coordinated issue of 6.75% unsecured notes due 2022 were steady, at 100/100.5, according to sources. Videotron 6.5% notes due 2021 were also at 100.25/100.75, versus par issuance. – Matt Fuller

Follow Matthew on Twitter @mfuller2009 for leveraged debt deal-flow, fund-flow, and trading news