Upsized Parsley, Matador and Rowan issues price, Chesapeake shopping eight-year notes

By Paul Deckelman and Paul A. Harris

New York, Dec.6 – Activity continued in the high yield primary market on Tuesday, with most of it seen in energy or energy-related names.

A total of $1.325 billion of new U.S. dollar-denominated and fully junk-rated paper came to market in three single-tranche deals, although that was off from the $2.2 billion which got done in two tranches on Monday, according to data compiled by Prospect News.

There were two deals from oil and natural gas exploration and production companies.

Parsley Energy, LLC priced a $650 million issue of eight-year notes, while Matador Resources Co. did a $175 million add-on to its existing notes due in April 2023. Traders saw modest gains in both issues when they hit the aftermarket, with Parsley’s new deal actively traded. The company’s existing 7˝% bonds, which are being tendered for using proceeds of the new deal, were also busy, and better.

The day’s third pricing came from Rowan Cos., Inc., which provides contract offshore drilling services to the petroleum industry. It priced $500 million of 8.5-year notes.

Syndicate sources said that all three of the day’s deals were upsized.

Besides the deals heard to have priced, the sources said that another sector name –Chesapeake Energy Corp. – was shopping $750 million of eight-year notes around to potential investors.

A lone non-energy deal surfaced in the dollar-denominated market Tuesday, as Canadian builder Mattamy Homes began a roadshow for its $300 million of seven-year notes.

© 2015 Prospect News.
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