Fortescue prices $1.5 billion deal; Community Health, Chemours, Resolute, Hexion price too

By Paul Deckelman

New York, May 9 – After two consecutive sessions where not much was seen going on in Junkbondland from a pricing perspective, the high-yield primary got its swagger back on Tuesday, as five issuers were heard by syndicate sources to have combined to bring some $2.9 billion of new dollar-denominated and fully junk rated paper pricing, all of it in quickly shopped and opportunistically timed drive-by transactions.

It was the most new paper the junk world had seen since March 30, when $3.88 billion priced in eight tranches.

Australia’s Fortescue Metals Group Ltd. was heard by high-yield syndicate sources to have priced an upsized $1.5 billion two-part offering on Tuesday.

The deal consisted of $750 million 4¾% five year notes and $750 million seven-year notes.

Community Health $900 million tap

Community Health Systems Inc. priced an upsized $900 million add-on offering (Ba3/BB-) to its existing 6¼% senior secured notes due March 31, 2023.

The deal was enlarged from an originally announced $700 million.

Chemours Co. priced $500 million of 10-year senior notes (B1) Tuesday, high yield syndicate sources said, with the new bonds coming to market at a slight discount to par.

Resolute Energy Corp. priced a $125 million add-on to its existing 8½% senior notes due May 1, 2020, according to high-yield syndicate sources.

Hexion Inc. priced a $75 million add-on to its 10 3/8% first-priority senior secured notes due Feb. 1, 2022, high yield market sources said.

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