Medical Properties Trust, Dematic price; losses mounting in NewPage debt; Nebraska Book drops

By Paul A. Harris and Stephanie N. Rotondo

Portland, Ore., April 19 - Medical Properties Trust, Inc. and Dematic SA priced a combined $750 million on Tuesday in the primary market, and Community Choice Financial, Inc. released talk on its planned $370 million of notes.

Secondary high-yield traders saw strength return to the market, reversing course after Monday's dip.

Trading was also a bit heavier than Monday despite the many desks left empty by the abbreviated holiday week.

The new issue realm did see some action but not as much as previous weeks.

"It will be a quiet week for new issues with the holidays," a trader said.

NewPage Corp. continued to lose ground as investors reacted to news out last week regarding another departing executive. The subordinated paper lost a solid 3 points or more during Tuesday's session.

Meanwhile, there was no news out to explain why Nebraska Book Co. Inc.'s debt dropped about 3 points on the day. Traders noted that volume in the credit was higher than usual.

Community Health Systems Inc. remained an actively traded credit, as it has been since last week when the market learned of Tenet Healthcare Corp.'s lawsuit alleging improper billing practices. Still, volume was less than it had been right after the news, and the bonds closed unchanged to just slightly better.

Medical Properties prices

Medical Properties Trust priced a $450 million issue of 10-year senior notes (Ba2/BB/) at par to yield 6 7/8%.

The yield printed in the middle of the 6¾% to 7% price talk.

J.P. Morgan Securities LLC, Merrill Lynch, Deutsche Bank Securities Inc. and RBC Capital Markets were the joint bookrunners.

By the bell, a trader saw a market of 101 locked.

The Birmingham, Ala.-based medical real estate investment trust intends to use proceeds to pay down existing debt.

Dematic comes on top of talk

Meanwhile, Germany's Dematic priced a $300 million issue of five-year senior secured first-lien notes (B3/B) at par to yield 8¾%, on top of the price talk.

JPMorgan and Deutsche Bank were the joint bookrunners.

The supplier of logistics and materials handling solutions plans to use the proceeds to repay its term loan and to fund a dividend.

The deal went well, according to a market source who saw the new notes at 101¼ bid, 101¾ offered.

Community Choice talks deal

Community Choice Financial talked its $370 million offering of eight-year senior secured notes (B3/B-) with a yield in the 10¾% area.

The books close at noon ET on Wednesday, and the deal is set to price thereafter.

Credit Suisse Securities (USA) LLC and Jefferies & Co., Inc. are the joint bookrunners.

Lee Enterprises bonds ahead

Lee Enterprises, Inc.'s $1.05 billion two-part offering of senior secured notes is expected to price as early as Monday.

The company's term loan and revolving credit facility fell by 6 points on Tuesday before bouncing off their lows late in the afternoon. Sources declined to either make or rule out a connection between the fortunes of the bond deal and the Tuesday price movements seen in the bank debt.

No official price talk has been heard on the deal, which includes $675 million of six-year first-lien notes and $375 million of seven-year second-lien notes.

Credit Suisse Securities and Deutsche Bank Securities Inc. are the joint bookrunners.

The second-lien tranche was the subject of reverse inquiry and is largely spoken for, market sources said.

The structure and pricing of the first-lien tranche have been in play, according to an asset manager.

The Davenport, Iowa-based newspaper publisher will use the proceeds to refinance existing notes issued by subsidiary St. Louis Post-Dispatch LLC as well as the subsidiary's revolving credit facility and term loan A.

Market indexes firm

The high-yield market, like the broader markets, rallied from Monday levels a bit. One trader noted that it was "a little busier than I had expected," what with the shortened holiday week.

The Markit CDX North American High Yield index improved 1/8 point to close at 102 bid, 102¼ offered. The KDP High Yield index was also firmer at 75.79, yielding 6.59%, versus Monday's reading of 75.72 with a 6.61% yield.

Calcipar doing well

Calcipar SA's new $450 million issue of 6 7/8% notes due 2018 was "a little bit better," a trader said, at 101 5/8 bid, 101 7/8 offered.

That compared to 101 bid, 101½ offered on Monday.

The issue priced Monday at par. The bonds (B1/BB-) were sold via Rule 144A.

More losses for NewPage

NewPage was the nom du jour as investors continued to pressure the papermaker's debt in the wake of yet another executive resignation.

One trader said the 10% notes due 2012 were "busy again," trading between 56¾ and 581/4. The bonds were at 60 bid, 61 offered on Monday, the trader said.

"A lot of bonds traded," he said.

He also saw the 11 3/8% notes due 2014 at 99½ bid, par offered, down from 100¼ bid, 100½ offered.

Another trader said the 10% notes were trading around "57 and change," down from 60 previously. The 11 3/8% notes were at 99½ bid, par offered.

"They weren't down as much, but they were down," he said of the 11 3/8% notes.

A third source also saw the 10% notes with a 57 handle and the 11 3/8% notes around 991/2.

The Miamisburg, Ohio-based company's bonds have been weighed down since Friday, when NewPage announced that its chief financial officer, David Prystash, had resigned. Curtis Short, chief accounting officer, will take the role on an interim basis on May 11.

Prystash's departure marks the fourth executive exit since June 2010. E. Thomas Curley left his post as president and chief executive officer, and Mark A. Suwyn resigned as a chairman and director. Michael Edicola also left his position as vice president of human resources.

Nebraska Book declines

Nebraska Book's 8 5/8% notes due 2012 saw "a lot of trading," a trader said, though he added that he wasn't "sure what was cooking there."

He pegged the issue at 73½ bid, 74¾ offered, down from 76 1/8 bid, 77½ offered.

Another trader said the issue was trading "in a pretty wide range" between 72 and 74. Still, he said that was down from 77 previously.

"Over the past couple of sessions, they have gone down from the low 80s to the low 70s," he said.

The trader also saw the 10% notes due 2012 "still around par."

At another desk, the 8 5/8% notes were seen around 74.

There was no fresh news out on the Lincoln, Neb.-based textbook reseller.

Community Health inches up

A trader said Community Health Systems' 8 7/8% notes due 2015 were "pretty much unchanged, maybe a little better" at 102 bid, 102 1/8 offered.

He said the bonds had been trading at 101¾ bid, 102 offered on Monday.

Another trader placed the paper at 101 7/8.

The Brentwood, Tenn.-based hospital operator has been an active one of late following news out last week that Tenet Healthcare - not coincidentally the target of a Community Health takeover - had filed a lawsuit against the company alleging improper billing practices.

On Monday, Community Health said it had sweetened its bid for Tenet, offering $1 in stock and $5 in cash per share.

"While Tenet has little to lose, Community [Health] has been painted into a position that it can really win only by complete exoneration, which will be tough to accomplish and could take years," wrote Gimme Credit LLC analyst Vicky Bryan in an afternoon note to clients. "If Community [Health] abandons its bid for Tenet and/or settles with authorities [that have requested information related to Tenet's allegations] later to make the investigation go away, its actions could be construed as an admission that it did commit fraud and Tenet was right to warn shareholders."

Broad market tidbits

Among other credits in the high-yield space, the 8 3/8% notes due 2033 issued by General Motors Corp. (Motors Liquidation Co.) remained weak, ending down nearly a point at 26¼ bid, 27¼ offered, a market source said.

Rival Ford Motor Co. meantime saw its 7.45% notes due 2031 inch up to 109 3/8 bid, 110 3/8 offered.

Another trader said OPTI Canada Inc.'s 7 7/8% notes due 2014 were "about the same" at 53½ bid, 54½ offered. Another source pegged the notes around 54.

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