Millicom, Recordati on tap; Petrobras, W&T Offshore, Ensco, Rowan improve

By James McCandless and Paul A. Harris

San Antonio, Oct. 9 – In the high-yield new issue market, players in the United States returned from an extended holiday weekend to a modest calendar comprising a pair of acquisition financing deals coming off European syndicate desks, sources said, while the secondary market saw most of its activity in oil and gas names.

Luxembourg-based Millicom International Cellular SA, which operates in Latin America and Africa, is running an international roadshow for a $500 million offering of eight-year senior notes (expected ratings Ba2/BB+) through Wednesday.

Recordati SpA plans to sell €1.28 billion of seven-year senior secured notes (expected ratings B2/B) before the end of the week.

Meanwhile, Petroleo Brasileiro SA’s notes were at the top of the secondary, seeing gains as a result of the first round of Brazil’s presidential election.

W&T Offshore, Inc.’s new 9¾% second-lien notes due November 2023 were seen rising above par.

Elsewhere, Ensco plc’s notes gained after the company announced its planned purchase of Rowan Cos. plc for $2.38 billion. Rowan’s notes also improved.

On the flip side, Tempur Sealy International’s paper has been declining since news broke Friday that Mattress Firm had filed for bankruptcy.

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