Ten US high yield issuers storm the market

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 announced.

“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 2.7045%.

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 Ultrapetrol.



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 gas industry.

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 containers.

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.



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 thereafter.

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 the deal.

Moody’s rated the proposed USD500m senior secured first lien notes B2, and gave a Caa2 rating to the USD1.35bn senior secured priority notes.

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.