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Last Weeks Bonds, with one to watch



April 01, 2013 – Comments (3)

Here's a summary of last week's corporate bond issues.

The holiday week dampened traffic, there was only about $14 billion in new paper with over half that coming from outside the US.

Most of the traffic was refinancing.  Privately held First Data rolled out a junk issue at 10.625% to fund a tender offer for existing 9.875% paper that doesn't mature for two more years.  The only reason I can think of for that move is the company wanted to hedge against the possibility of higher rates or tight credit later on.

In an much easier to understand move, Graphic Packaging (GPK) issued a 4.75% high-yield bond to take down some 9.5% paper.  The move should save Graphic about $20 million per year.  Considering it earned $122 mil last year, the  refi should make a noticable improvement in earnings and earned GPK a place on my watchlist.

Fool on!


3 Comments – Post Your Own

#1) On April 01, 2013 at 10:18 PM, thecherryz (84.54) wrote:

Hey rd, I was just wondernig how you find all your information on this topic.  Where do you go?  If it's private that's fine but if there's a way to send messages in caps I'd like that or e-mail me at  Thank you.

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#2) On April 02, 2013 at 9:45 AM, rd80 (95.74) wrote:

My primary sources for the bond articles are public information.

Reuter's posts a list of new bond issues.  You can find it by Googling "US Forward Calendar" and look for the most recent hit from Reuter's.

From there, it's sifting through SEC filings and press releases to get the details.

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#3) On April 02, 2013 at 4:28 PM, thecherryz (84.54) wrote:

I see, great work.

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