NEW YORK, Sept 23 (IFR) - Ten high-yield issuers announced
new deals on Monday in a rush to grab an unexpected longer
window to print bonds before the Federal Reserve finally starts
to reduce its bond buying program.
Today's issuers join four other borrowers already in the
pipeline including Dell and CPG International with acquisition
finance bonds and Howard Hughes and SNF Floerger, which are
looking to raise deals for general corporate purposes and to
refinance existing debt respectively.
Dell is expected to price its deal, a USD2bn seven-year
non-call three first lien high-yield bond, later today with
books due to close at noon. Left lead Credit Suisse set price
talk on the deal at 5.5%-5.75% on Friday.
Casino group Caesars Entertainment is expected to boost
volume even further with a jumbo refinancing, which Citi is
expected to lead, although a formal mandate has not yet been
"Treasuries are almost 30bp tighter on the week, and the
mentality of issuers is to go now before tapering starts," said
one high yield syndicate banker.
By 10am ET on Monday, 10-year Treasury yields were around
In the broader credit market, the HY20 was at 106.15 in early
trade, off about 1/16 of a point. The secondary performance of
some recent new deals, meanwhile, was fairly steady.
Hilton's high-yield deal, a USD1.5bn eight-year non-call
three senior bond, one of the last to print on Friday, was bid
just below reoffer at 99.875 on Monday, the banker said.
Most of the new deals announced on Monday are refinancings,
although both ADT Corp and General Motors will use part of the
proceeds from their issues to fund stock purchases.
ADT is looking to raise USD1bn from an eight-year senior
notes offering, while General Motors is out with a three-year
benchmark deal targeting five-, 10- and 30-year maturities. Both
deals are penciled in to price on Tuesday.
Price talk on General Motor's deal has been set at 4% area,
5.25% area and 6.75-7% area respectively.
Of the deals announced Monday, only three are expected to
price later today, a USD300m eight-year non-call three senior
unsecured note for Energy XXI Gulf Coast which is being run by
Citi, Royal Bank of Scotland, Wells Fargo, Barclays, Credit
Suisse and UBS, a USD400m add-on to Whiting Petroleum Corp's
5.75% senior notes due 2021 and a small USD25m add-on for
ANNOUNCED ON MONDAY:
ANNOUNCED: Ultrapetrol (Bahamas) Limited, B3/B-(existing
ratings), announced a USD25m 8.875% 6/15/21 first preferred ship
mortgage notes add-on via BAML/JEFF. 144a w/reg rights. USD101
COC put. Equity clawback up to 35% for the first 3-years at par
plus the coupon. UOP: GCP. BIZ: Ultrapetrol is an industrial
shipping company serving the marine transportation needs of our
clients primarily in South America. It serves the shipping
markets for soybeans, grain, forest products, minerals, crude
oil, petroleum, refined petroleum products and general cargo, as
well as the offshore oil platform supply market. Expected to
price later today.
ANNOUNCED: General Motors Co., Ba1/BB+/BB+(expected
ratings), announced a USD benchmark 3-part deal via
CITI/BAML/JPM/MS(act)/BNP/RBS/UBS(pass). Structure will consist
of a 5yr, 10yr and 30yr senior unsecured notes. 144a w/reg
rights. Make-whole call provision applies. UOP : GCP, including
the repurchase of USD3bn of series A preferred stock. Expected
to price Tuesday (9/24). Settlement date T+3.
ANNOUNCED: Allegion US Holding Company Inc., Ba2/BB+
(expected ratings), announced a USD300m 8yr nc3 senior notes via
GS(left)/JPM/BNP/BAML/CITI/CS. 144a/RegS w/reg rights. UOP:
Proceeds will be used to pay a cash distribution of approx
USD1,500mm to Ingersoll Rand and pay estimated fees and expenses
associated with Financing Transactions of approx USD22mm.
Roadshows begin 09/23), with pricing expected 09/27. NY Group
Lunch on Tuesday at 11:30am.
ANNOUNCED: Whiting Petroleum Corp, Ba2/BB+, announced a
USD400m add-on its 5.75% senior notes due 2021 via WFS/JPM/BAML.
144a/Reg S w/reg rights. Sr co-mgrs
BBVA/STRH/USB/CAPONE/CIBC/RBC/MITS. 144a/RegS w/reg rights. The
deal will be fungible upon registration, within 300 days of
issuance. UOP: GCP. BIZ: An independent oil and gas company
engaged in exploration, development, acquisition and production
activities primarily in the Rocky Mountains, Permian Basin,
Mid-Continent, Michigan and Gulf Coast. Current size outstanding
USD800m. Expected to price 09/23.
ANNOUNCED: Forum Energy Technologies, Inc., Ba3/BB(expected
ratings), announced a USD300m 8yr nc3 issue via
JPM/WFS/BAML/CITI/DB//HSBC/COMERICA. First call at par plus 75%
coupon. Roadshows begin today (23Sep), with pricing expected
09/27. 144a/RegS w/reg rights. UOP: Repay existing term loan and
portion of revolver. BIZ: Manufacturer of oilfield products and
related after-market technical services in the oil and natural
ANNOUNCED: Artesyn Technologies Inc., TBD/B (expected
ratings), is selling a USD250m 7yr nc3 senior secured note issue
via BAML/GS. 144a for life. First call at par plus 75% of the
coupon. Equity call up to 40% at par plus the coupon for the
first 3-years. Special call up to 10% par 12-month period at 103
for the first 3-years. UOP: Proceeds from the offering, along
with a cash equity investment by Platinum Equity, will be used
to fund the acquisition of the majority of the capital stock of
Artesyn from Emerson Electric Co. BIZ: Artesyn is a provider of
application-specific, highly customized and high reliability
power conversion products and a manufacturer of customized
microprocessor-based boards and systems. Roadshows begin 09/23
with a global investor call & NY lunch 12:30pm. Roadshows end
Thursday 09/26, pricing thereafter.
ANNOUNCED: Clayton Williams Energy, Inc., B3/B- (expected
ratings), announced a USD250m 7yr nc3 senior unsecured note
issue via RBS/JPM/MUFJ/MITSU/WFS. 144a w/reg rights. Co-mgrs
BBVA/FIFTH THIRD/GLOBAL HUNTER/KEY/NATIXIS/USB/UBS. First call
premium 75% of coupon. Roadshows expected to last 2 to 3 days.
USD101 COC put. UOP : To refinance revolver borrowings.
Settlement date T+3.
ANNOUNCED: The ADT Corp, Ba2/BB-(expected tranche ratings),
announced a USD1bn 8yr senior notes issue via
GS(left)/MS/DB/CITI. 144a w/reg rights. Roadshows begin 09/23,
with pricing expected tomorrow 09/24. UOP: Proceeds will be used
to fund share repurchases, pay down the revolver and for general
corporate purposes including acquisitions.
ANNOUNCED: Plastipak Holdings Inc., Caa1/B(existing
ratings), announced a USD300m 8yr nc3 senior note issue via
JPM/WFS/RBS/BAML/GS//KEYBANC. Roadshows start 09/23 with pricing
expected 09/25. First call at par plus 75% coupon. 144a/RegS for
life. UOP: Tender for the 10.625% Senior Notes due 2019 and GCP.
BIZ: Designer, manufacturer and supplier of plastic packaging
ANNOUNCED: Energy XXI Gulf Coast, Inc., Nr/Nr, is planning a
USD300m 8yr nc3 senior unsecured note issue via
CITI/RBS//WFS/BARC/CS/UBS. 144a w/reg rights. Sr co-mgrs Capital
One Securities, Inc., Regions Securities LLC and Scotia Capital
(USA) Inc. Co-mgrs ING Financial Markets LLC, Natixis Securities
Americas LLC, TD Securities (USA) LLC, Comerica Securities,
Inc., Cowen and Company, LLC, Deutsche Bank Securities Inc.,
IBERIA Capital Partners L.L.C., Johnson Rice & Company L.L.C.,
KeyBanc Capital Markets Inc. Investor call at 10am 09/23, with
pricing expected later this afternoon. USD101 COC put. Covenants
substantially similar to existing 7.75% sr unsecured notes due
2019. UOP: Refinancing of revolver borrowings.
ANNOUNCED LAST WEEK:
Denali Borrower (to be merged into Dell International LLC at
close of merger), announced a USD3.25bn 144A/RegS 2-part deal
via CS/BARC/BAML/RBC/UBS. Structure will consist of a USD2bn 7yr
NC3 1st lien notes rated Ba2/BB+, and a USD1.25bn 8yr nc3 2nd
lien notes rated Ba3/BB. Roadshows began on Tuesday, with
pricing expected early next week.
PRICE TALK: USD2bn 7yr nc3 1st lien tranche, 5.50% - 5.75%.
The 2nd lien bond dropped with the full USD1.25bn coming in loan
form. Books close Monday (9/23) at noon, with pricing
CPG, Caa2/CCC+(expected ratings), is planning to sell a
USD315m 8yr nc3 senior note offering via
JPM/BARC/DB/CITI/RBS/UBS. 144a/RegS life. Pricing expected 9/24.
Caesars Entertainment filed to sell a USD1.85bn 2-tranche
deal, to consist of 1st lien and 2nd lien notes. No official
mandate has been announced yet, though Citi is expected to lead
Moody's rated the proposed USD500m senior secured first lien
notes B2, and gave a Caa2 rating to the USD1.35bn senior secured
The Howard Hughes Corp. announced a USD500m senior notes
transaction due 2021 (8Y). NC3 (then par plus 3/4 of the
coupon). Via Credit Suisse. Equity claw: 3y 35%. Coc 101%. 144a
for life. Roadshow starts Monday (9/23) for pricing late 9/23
week. UOP: GCP. Biz: developer and operator of master planned
communities and commercial properties across the US.
SNF Floerger, Ba3/BB+(expected ratings), announced a USD250m
8.3yr nc4 senior unsecured notes via BAML/BNP. Co-mgrs
CA/HSBC/NATIXIS. 144a for life. Investor call 09/23 at 12:30pm
in NY, Boston on 09/24 and West Coast on 09/25, with pricing
thereafter. UOP: Proceeds will be used to refinance borrowings
under the Company's existing credit facilities and GCP. BIZ: SNF
Floerger is the world's largest producer of polyacrylamide, a
water-soluble specialty chemical used in water treatment, oil
and gas applications, mineral.