Southwestern Energy megadeal, Ladder, El Dorado drive by; new United Rentals busy, better

By Paul Deckelman and Paul A. Harris

New York, Sept. 11 – The recently revived high-yield primary market continued to churn out new deals Monday, with over $2 billion of U.S. dollar-denominated and fully junk-rated paper heard to have priced in four tranches, syndicate sources said, all of it in quickly-shopped transactions.

Oil and natural gas exploration and production company Southwestern Energy Co. priced a two-tranche deal totaling $1.15 billion, split between 8.5-year and 10-year paper.

Gaming operator El Dorado Resorts, Inc. brought an upsized $500 million add-on to its existing 2025 notes to market.

And Ladder Capital Corp., a real estate investment trust, did a $400 million offering of eight-year notes.

Traders quoted the latter issue higher, but said overall, they did not see much initial aftermarket activity in the day’s issues.

They did see Southwestern Energy’s existing bonds firm on news of the company’s new debt issue, the proceeds of which will be used to fund tender offers for some of its outstanding bond issues.

The traders meantime saw considerable activity in the new United Rentals (North America) Inc. issue, which had priced on Friday, and said that the new notes were firmer on the day.

Away from the new deals, market participants said hospital names such as Tenet Healthcare Corp. and HCA Inc., which had been under pressure last week on angst about possible damage to far-flung holdings in storm ravaged Florida, bounced back in active trading Monday.

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