Morning Commentary: Shelf Drilling on tap; early whisper heard for Albertsons’ floating-rate notes

By Abigail W. Adams

Portland, Me., June 5 – While the domestic primary market has been active with the forward calendar filling in, only one dollar-denominated add-on is expected to price on Tuesday.

Shelf Drilling Holdings, Ltd. whispered its $300 million add-on to its 8¼% senior notes due Feb. 15, 2025 at a reoffer price of 101, according to a market source.

The deal is being marketed via an investor call, which was scheduled for 10 a.m. ET on Tuesday with pricing to take place thereafter.

Credit Suisse Securities (USA) LLC is the left lead for the Rule 144A and Regulation S for life deal. RBC Capital Markets Corp., HSBC Securities (USA) Inc. and ING Financial Markets LLC are also bookrunners.

Albertsons Cos., Inc. whispered its $500 million offering of 5.5-year senior secured floating-rate notes at Libor plus 425 basis points with an offer price in the 99 range, according to a market source.

The deal is being marketed via a brief roadshow on Tuesday with pricing expected on Wednesday.

BofA Merrill Lynch is left lead on the Rule 144A for life offering. Credit Suisse, Goldman Sachs & Co., Morgan Stanley & Co. LLC, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets, Wells Fargo Securities LLC and MUFG are joint bookrunners.

The forward calendar in the European market is also filling in with several large deals set to price this week.

InterXion Holding NV will begin a roadshow on Wednesday for a €1 billion offering of seven-year senior notes that will run until Thursday with pricing expected thereafter, according to a market source.

BofA Merrill Lynch is the lead on the Rule 144A and Regulation S deal. Barclays, ABN Amro Inc., Citigroup Global Markets Inc. and Credit Agricole are also bookrunners.

Meanwhile, CDK Global, Inc.’s newly priced 5 7/8% senior notes due 2026 (Ba1/BB+) continued to perform well in the secondary market.

The notes were seen at 101 3/8 bid, 102 1/8 offered early in Tuesday’s session, according to a market source.

CDK priced a $500 million issue of the eight-year senior notes (Ba1/BB+) at par in a drive-by sale on Monday.

Pricing came tighter than price talk and initial guidance that were both set in the 6% area.

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