Community Health, Hilton Worldwide megadeals lead $4.7 billion session, year’s busiest

By Paul Deckelman and Paul A. Harris

New York, March 7 – The high-yield primary market had its heaviest one-day total of new issuance for the year so far on Tuesday, with some $4.7 billion of new U.S. dollar-denominated and fully junk-rated paper being priced by five issuers in a total of six tranches, junk-bond syndicate sources said.

That topped the $4.26 billion of such paper from domestic or industrialized-country borrowers that had gotten done in seven tranches on Jan. 12, according to data compiled by Prospect News, and in fact was the biggest one-day issuance total since last June.

All of the day’s issuance came in opportunistically timed and quickly shopped drive-by offerings, the sources said.

The big deal of the day came from hospital operator Community Health Systems Inc. – a sharply upsized $2.2 billion of six-year secured notes.

Hospitality provider Hilton Worldwide Holdings Inc. brought a $1.5 billion two-part offering to market, consisting of eight-year and 10-year paper.

Energy company Crestwood Equity Partners LP did $500 million of eight-year notes via a subsidiary.

A pair of $250 million deals rounded out the day’s pricing parade – a tranche of eight-year senior notes from builder Beazer Homes USA, Inc. and an issue of 10-year subordinated notes from car retailer Sonic Automotive, Inc.

Secondary market traders saw brisk activity in the new Community Health, Crestwood, Beazer and Sonic credits.

© 2015 Prospect News.
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