Investors weigh prospective tenders and buy-out issuance

Electronic sensor maker Sensata on Friday announced a modified Dutch auction for senior and subordinated notes. The company is seeking to purchase $350 million in aggregate and is offering holders of the €177 million of its 9% sub notes, due 2016, total consideration in the range 87.5-97.5 cents, including a three-cent early bird incentive. Sensata is offering the 2014-dated 8% dollar senior notes in the 90-100 cent range and the 11.25% dollar sub notes at 95.625-105.625 cents. The offer is contingent on a successful IPO by the parent company.

Elsewhere, Ladbrokes announced receipt of £117 million in valid tenders of its £250 million 7.125% notes 2012. The gaming firm priced £225 million (upsized from £200 million) notes at par to yield 7.35%.

Prudential could also be about to issue debt and rights as part of a revealed plan to purchase AIA, the Asian life insurance business of AIG for some $35 billion. The market capitalisation of the Prudential is £15 billion.

AIG has benefitted strongly from the news. Credit default swaps on the insurer closed at two points upfront on Friday but are now 450/475bp after the news, according to latest quotes from interdealer broker Phoenix Partners.