Gaming & Leisure Properties, GEO Group drive by, new GEO up; Chesapeake gains on debt deal

By Paul Deckelman

New York, April 11 – The high yield primary market opened the new week on Monday with a pair of drive-by pricings from real estate investment trusts totaling $1.725 billion, syndicate sources said.

The big deal of the day came from casino industry REIT Gaming & Leisure Properties Inc., which priced $1.375 billion of new paper, split up into five- and 10-year tranches. That deal appeared too late in the session for any kind of aftermarket, traders said.

They did see brisk aftermarket dealings in the day’s other new issue – private corrections and treatment facilities REIT the Geo Group, Inc.,’s upsized $350 million of 10-year notes. Those bonds gained at least a point when they were freed for secondary dealings.

Traders saw Friday’s note offering from Quorum Health Corp. continue impressive gains it notched after it was freed to trade.

There was continued heavy trading in last week’s offering from French telecommunications company Numericable SFR SA and from the previous week’s Western Digital Corp. two-part offering.

Away from the deals which have been priced, syndicate sources said another gaming company, Pinnacle Entertainment, Inc., plans to soon shop a $300 million note issue around to potential investors.

MTS Systems Corp., a supplier of high-performance test systems and position sensors, plans a $250 million note offering.

Away from the new deals, Chesapeake Energy Corp.’s paper jumped on higher oil prices and news the oil and gas producer had reached a debt agreement with its lenders.

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