By Joy Ferguson and Rachelle Kakouris
May 20 (IFR) – It’s looking like another busy week for
high-yield as issuers rush in ahead of the long Memorial Day
weekend to take advantage of the current window for issuance at
near-record low coupons. A total of 10 deals worth USD4.5bn have
been added to the fray, most of which will be used to refinance
existing debt.
New Jersey-based packaged foods company B&G; Foods is
seeking to raise USD700m in eight-year non-call three senior
unsecured debt to refinance a portion of the existing capital
structure, including a tender offer for its USD249m 7.625%
senior notes due 2018, repayment of its USD222m term loan B,
USD40m of revolver borrowings and to provide USD149m of cash to
its balance sheet.
The deal via Credit Suisse, Barclays, RBC, BofA Merrill and
Deutsche Bank joint books was to price later today. Moody’s
assigned it a B1 (stable) rating.
Also for today, Sabra Healthcare, a self-managed REIT that
owns and invests in real estate for the healthcare industry, is
looking to raise USD200m in SEC-registered 10-year non-call five
senior notes, expected to be rated B1/BB-.
An investor call will be held at 12pm today via bookrunners
BofA Merrill, Barclays, RBC and WFS joint books.
Concho Resources is returning to the high-yield
market with a USD500m add-on to its existing 5.5% SEC-registered
senior secured notes due April 1, 2023. The Texas-based oil and
gas producer plans to use proceeds of the sale to fund a cash
tender offer for its USD300m 8.625% senior notes due 2017 and to
repay a portion of the outstanding balance under its credit
facility.
The original USD700m deal, rated B1/BB+, priced August 14,
2012 at 5.5% at par to give a spread of 381bp over US
Treasuries.
Pricing is today via joint bookrunners BofA Merrill,
Barclays, Citi, JP Morgan and Wells Fargo.
Newly announced for pricing later this week,
North-Carolina-based Midstates Petroleum Co Inc is
staging a return to the high-yield market with a USD700m deal to
fund the cash portion of the company’s previously announced
acquisition of oil and gas acreage in the Anadarko Basin in
Texas and Oklahoma from Panther Energy LLC and its partners.
The eight-year non-call three senior notes offering is
pegged for later this week via bookrunners Morgan Stanley,
SunTrust, BofA Merrill, RBC, SG CIB, Citi, Goldman Sachs,
Natixis and RBS. The remaining proceeds will be used to repay a
portion of the outstanding borrowings under the company`s
revolving credit facility.
Springleaf Finance Corp (formally known as
American General) is on the road to sell USD250m in seven-year
senior bullet notes for pricing midweek. The consumer finance
company commenced investor presentations today via BofA Merrill,
Citi and Credit Suisse joint books.
Springleaf’s existing ratings are Caa1/CCC+.
Mortgage lender Provident Funding is readying a
USD500m eight-year non-call three senior notes offering to
repurchase its 10.25% senior secured notes due 2017. The issuer
began an investor roadshow today via BofA Merrill, Citi and
Jefferies joint bookrunners.
Aluminum producer Century Aluminum hit the road
today to sell USD250m in eight-year non-call three senior
secured notes to refinance its existing 8% senior secured notes
due 2014. Pricing is expected later this week via Credit Suisse
and Wells Fargo.
Irish drugmaker Elan commenced an investor roadshow
today to market a USD800m high-yield offering that will fund
share purchases, capital expenditure and acquisitions.
The company, rated Ba3/B+, announced Morgan Stanley as sole
bookrunner on the eight-year senior note, callable after three
years. The deal coincides with an announcement that Elan is
buying two private drug firms and buying back more shares.
The company said last week it was planning to raise a bond
to fund the 21% stake of the royalties that Theravance receives
from GlaxoSmithKline for its respiratory drugs.
The deal is expected to price later this week after the
presentations end on Wednesday.
Also for later this week, Vantage Oncology, a provider of
radiation therapy, is seeking to raise USD250m in four-year
non-call one senior secured notes via Jefferies, SunTrust and
BMO.
Finally for new pipeline entries, oil and gas company
Memorial Production Partners is selling a USD100m
add-on to its 7.625% senior secured notes due May 1, 2021 to
repay existing debt. Wells Fargo is sole bookrunner.
Other deals already on the calendar for pricing this week
include Getco Financing with a USD305m five-year non-call senior
secured transaction and Springs Industries with a USD470m
eight-year non-call three senior secured notes.
In the secondary market the CDX HY20 was down 1/8 of a point
at 106.96875/107.09375.
U.S. Treasuries……….
U.S. Treasury outlook…
U.S. corporate bonds….
U.S. agencies………..
U.S. mortgage-backeds…
U.S. asset-backeds……
U.S. municipal bonds…
(Reporting by Joy Ferguson and Rachelle Ferguson; Editing by
Marc Carnegie)
