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Clearwire shares slump, bonds hold fast as Google offloads shares

Clearwire shares slumped nearly 7% today, to $2.12, on news that investment-partner Google plans to dump its up-to-29.4 million shares of Clearwire stock at $1.60 per share. Other investors, including Sprint Nextel and Comcast, have first rights to purchase the shares as part of their coordinated agreements, but Google would otherwise execute in the open market, according to SEC filings.

Clearwire bonds held steady amid the strong market conditions and despite the ominous news. The 12% first-lien notes due 2015 are stuck at 96/97, versus trades at 96.75 yesterday, while the 12% second-lien notes due 2017 are also rangebound, at 82/84, according to sources. Both are significantly better than respective low 70s and 40 levels late last year when the company warned about Dec. 1 coupon payments.

Clearwire 14.75% first-lien notes due 2016 likewise are steady today, wrapped around 103. The $300 million deal is CCC/B3 and was issued late last month, at par, backing deployment of mobile 4G LTE technology as well as for general corporate purposes, according to sources. J.P. Morgan was sole lead.

All three issues were sold under Rule 144A for life. – Matt Fuller

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CIT Group two-part, second-lien bonds price at talk; terms

CIT Group today completed a two-part offering of second-lien C notes via bookrunners J.P. Morgan, Barclays, Bank of America, and Goldman Sachs, sources said. Terms on the three-year notes came at talk, while the seven-year tranche was inked tight to guidance. As well, an early read on the gray market points to follow-on demand on the break, with market quotes up at least a quarter of a point, sources note. Proceeds will be used to repay existing debt and for general corporate purposes. This is the first bond deal for the credit since placing $2 billion of series C second-lien notes in March 2011 to refinance series A paper due 2013 that was put in place in 2009 as part of the finance company’s plan of reorganization. Terms:

Issuer CIT Group
Ratings B+/B2
Amount $1.5 billion
Issue second-lien C notes (144A)
Coupon 4.75%
Price par
Yield 4.75%
Spread T+445
FRN eq. L+419
Maturity Feb. 15, 2015
Call nc-life
Trade Feb. 2, 2012
Settle Feb. 7, 2012 (t+3)
Books JPM/BC/BAML/GS
Px talk 4.75% area
Notes
Issuer CIT Group
Ratings B+/B2
Amount $1.75 billion
Issue second-lien “C” notes (144A)
Coupon 5.50%
Price par
Yield 5.50%
Spread T+425
FRN eq. L+405
Maturity Feb. 15, 2019
Call nc-life
Trade Feb. 2, 2012
Settle Feb. 7, 2012 (t+3)
Books JPM/BC/BAML/GS
Px talk 5.625% area
Notes