U.S. Concrete is 2017’s first deal, breaks ice for others; Bonanza jumps on Chapter 11

By Paul Deckelman and Paul A. Harris

New York, Jan. 4 – The high-yield market’s long, traditional early-winter new-deal drought came to an end on Wednesday as U.S. Concrete, Inc. priced a smallish, quickly shopped add-on offering to its existing 2024 notes.

That $200 million offering was the first new deal seen in Junkbondland since Dec. 20.

Syndicate sources said now that the ice has been broken, other issuers will likely bring deals to market during the narrow window of opportunity ahead of the Martin Luther King Jr. federal holiday later this month, with new-deal announcements possible as early as Thursday.

In the secondary arena, traders quoted the U.S. Concrete notes slightly above their issue price, about where the existing bonds had already been trading before the new-deal announcement.

There was continued activity in Noble Holding International Ltd.’s new 2024 notes, which had priced in mid-December, with the offshore oil drilling company’s bonds moving back up to their issue price after a long time trading well under that level.

Away from the new or recent offerings, Bonanza Creek Energy Inc.’s bonds jumped in active dealings as the beleaguered oil and natural gas company initiated its previously announced pre-packaged Chapter 11 proceedings, which will see holders of its $867 million of outstanding notes and other general unsecured creditors walk away with the lion’s share of the restructured company’s stock.

Statistical market performance measures were firmer for a fourth consecutive session on Wednesday.

© 2015 Prospect News.
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