Isle of Capri, Kosmos drive by; new Isles climbs; oil price surge again boosts energy names

By Paul A. Harris and Paul Deckelman

New York, April 7 – Drive-by add-ons to existing tranches of bonds were the dominant feature in Tuesday’s high-yield primary sphere, syndicate sources said.

They saw two such deals, totaling $375 million having priced during the session.

Isle of Capri Casinos, Inc. came to market with a $150 million addition to its existing 2021 notes, while Kosmos Energy Ltd. did a $225 million add-on to its own 2021 paper.

Traders said the Isle of Capri offering had moved up when it was freed for initial aftermarket dealings but did not see the new Kosmos Energy notes, which priced well below the existing bonds’ previous levels.

They also saw active dealings in Monday’s new issue from Endeavor Energy Resources LP. Those bonds had firmed smartly in initial aftermarket dealings after their pricing, and got modestly better on Tuesday as well.

Last week’s new deals from Hexion Inc. and Interval Leisure Group were also seen among the gainers in a generally upside market session.

World crude oil prices jumped for a second straight session, helping to push up energy names such as Transocean Inc. and Chesapeake Energy Corp. And helped by favorable financial media commentary about the company, Peabody Energy Corp.’s bonds did especially well.

Statistical indicators of market performance were meanwhile higher across the board for a second consecutive session on Tuesday.

© 2015 Prospect News.
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