Upsized Sanchez Energy prices to cap $10.4 billion week, recent deals trade up

By Paul Deckelman and Paul A. Harris

New York, June 13 – The high-yield primary closed out a busy week on Friday with an upsized $850 million offering from Houston-based oil and natural gas exploration and production company Sanchez Energy Corp.

That regularly scheduled forward calendar offering brought the week’s new issuance up to $10.42 billion in 22 tranches, according to data compiled by Prospect News.

That was more than double the $4.82 billion of new U.S.-dollar-denominated, fully junk-rated offerings from domestic or industrialized country borrowers which had come to market the week before, ended June 6.

The week’s issuance, in turn, raised the year-to-date total to $160.54 billion in 306 tranches – just slightly off from the pace seen a year ago. Issuance totaled $161.26 billion in 362 tranches by this point on the calendar last year.

Besides the new Sanchez Energy bonds, which were seen to have firmed solidly when they hit the aftermarket, traders reported good gains in such recently priced new deals as those from Seventy Seven Energy Inc. – the oilfield services business of Chesapeake Energy Corp. – and clothing retailer Men’s Wearhouse, Inc., the latter being probably the week’s star secondary performer among the new transactions.

Statistical market performance indicators were mixed for a third consecutive session on Friday.

© 2015 Prospect News.
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