Hilton, Nielsen, Seadrill, Boart lead busy Friday of restructured new deals; Springleaf rises

By Paul A. Harris and Stephanie N. Rotondo

Phoenix, Sept. 20 - A raft of deal restructurings hit the tape in the high-yield primary market on Friday, as issuers whittled and hacked multi-tranche deals, some sending proceeds into the bank loan market.

All told, four issuers brought single-tranche deals, and priced $2.93 billion of bonds.

Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp. priced a downsized and restructured $1.5 billion issue of senior notes while Nielsen priced an upsized $625 million drive-by issue of senior notes.

Seadrill Ltd. priced $500 million of non-rated senior notes and Boart Longyear Management Pty Ltd. brought a restructured $300 million offering of senior secured notes.

The sterling-denominated market was also active during Friday's session, seeing two deals price.

Meanwhile the secondary high-yield bond market was mixed in Friday trading, as some desks were vacated early.

The market was also attempting to digest comments made by James Bullard, president of the Federal Reserve Bank of St. Louis. Bullard said that the central bank could decide to start to taper its stimulus program as early as October, after deciding on Wednesday to delay changes to the program.

In secondary dealings, Springleaf Finance Corp. bonds were inching upward. The company priced a two-tranched deal earlier in the week and also concurrently launched an exchange for its 6.9% notes due 2017.

$1.395 billion inflow

High yield funds saw $1.395 billion of inflows for the week to Wednesday, according to a market source who was citing a weekly report from Lipper-AMG.

It follows the previous week's $632 million inflow.

For the year so far, inflows have now been seen in 22 weeks, against 16 weeks of outflows, according to a Prospect News analysis of the fund-flow numbers.

Although the positive weeks outnumber the negative ones, cash amounts tell a much different story, as year-to-date flows remain deep in the red.

For 2013 to date, net flows are negative $5.6 billion, factoring in the latest week's strong positive number, according to the analysis.

Hilton downsizes, restructures

Still, the new issue flow was hot and heavy as the week drew to a close, even if many deals underwent significant changes before terms were set.

Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp. priced a downsized and restructured $1.5 billion issue of eight-year senior notes (B3/B) at par to yield 5 5/8%.

The yield printed at the tight end of yield talk set in the 5¾% area.

The roadshow, which was expected to continue into the week ahead, was cut short.

A proposed $1.25 billion tranche of secured notes was withdrawn, as was a proposed tranche of 10-year unsecured notes.

Meanwhile the company's new term loan B-2 was upsized to $7.6 billion from $5 billion.

The left bookrunner for the bond deal was BofA Merrill Lynch. Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the joint bookrunners.

The McLean, Va.-based hospitality company plans to use the proceeds to repay debt.

Nielsen upsizes

In drive-by action, Nielsen priced an upsized $625 million issue of eight-year senior notes (B2/BB) at par to yield 5½%.

The deal was increased from $500 million.

JP Morgan Securities LLC, Citigroup Global Markets, Goldman Sachs & Co. and Wells Fargo Securities LLC are the joint bookrunners.

Proceeds will be used to redeem the company's 11 5/8% notes due 2014 and for general corporate purposes, including capital expenditures, working capital, and to fund a portion of the acquisition of Arbitron Inc.

Nielsen is a New York and Netherlands-based provider of information and insights into what consumers watch and buy.

Seadrill non-rated bullet

Oslo-based Seadrill priced a $500 million issue of non-rated non-callable seven-year senior notes at par to yield 6 1/8%.

The yield printed on top of yield talk.

The notes are subject to a coupon step-up of 50 basis points if they are not rated by March 14, 2014.

Deutsche Bank Securities Inc. ran the books.

Proceeds will be used to repay debt, fund capital expenditures, and for general corporate purposes.

Seadrill provides offshore drilling services to the oil and gas industry.

Boart Longyear restructures

Boart Longyear Management Pty Ltd. priced a restructured $300 million issue of non-callable five-year senior secured notes at par to yield 10% on Friday, according to a market source.

The yield printed on top of yield talk.

J.P. Morgan Securities LLC, BofA Merrill Lynch and Goldman Sachs & Co. are the joint bookrunners.

The deal was launched as 300,000 of $1,000 units comprised of $867 of senior secured notes and $133 of unsecured notes. However the unsecured portion of the deal is withdrawn and the full face amount rolled into the remaining senior secured tranche, rendering it a straight-out bond deal rather than a units offering.

The South Jordan, Utah-based maker of drilling and mining equipment plans to use the proceeds to pay down its revolver.

Jerrold prices secured notes

The sterling-denominated market was also active during the session.

Jerrold Holding Ltd. priced a £200 million issue of five-year senior secured notes (B+/B+) at par to yield 9¾%.

The yield printed at the tight end of yield talk that had been set in the 9 7/8% area.

RBS Securities Inc., Jefferies Group and Lloyds TSB led the deal.

The Cheadle, Cheshire, England-based mortgage lender plans to use the proceeds to refinance debt.

Soho House at the tight end

London-based Soho House priced an upsized £115 million issue of five-year senior secured notes (/B-/) at par to yield 9 1/8%.

The deal was increased from £105 million.

The yield printed at the tight end of yield talk set in the 9¼% area.

Imperial Capital ran the books.

Proceeds will be used to refinance debt.

Soho House is a private members' club aimed primarily at those in the film, media and creative industries.

Dell downsizes, restructures

Looking to the week ahead Dell International LLC talked a $2 billion offering of seven-year first-lien notes (Ba2/BB+) to yield 5½% to 5¾%.

The issuer abandoned a proposed $1.25 billion tranche of second-lien notes, and announced plans to bring the full amount in the form of a term loan.

Books for the notes offer close at noon ET on Monday, and the deal is set to price thereafter.

Joint bookrunner Credit Suisse Securities (USA) LLC will bill and deliver for the Rule 144A and Regulation S notes offer. Barclays, BofA Merrill Lynch, RBC Capital Markets and UBS Investment Bank are also joint bookrunners.

Bond and loan proceeds will be used to fund the acquisition of the company and refinance debt.

Dell is a Round Rock, Texas-based provider of technology and business products and services.

Howard Hughes to roadshow

Howard Hughes Corp. plans to start a roadshow on Monday for a $500 million offering of eight-year senior notes.

The deal is set to price late in the week ahead.

Credit Suisse Securities (USA) LLC is the sole bookrunner for the Rule 144A for life offering.

The notes become callable in three years at par plus 75% of the coupon.

The Dallas-based property developer plans to use the proceeds for general corporate purposes.

SNF Fleorger starts Monday

France-based SNF Floerger plans to start a roadshow on Monday for a $250 million offering of senior notes due Jan. 15, 2022 (expected ratings Ba3/BB+).

There will be an investor call at 12:30 p.m. ET on Monday.

The roadshow wraps up on Wednesday, and the deal is set to price thereafter.

BofA Merrill Lynch is the left bookrunner for the Rule 144A for life deal. BNP Paribas is the joint bookrunner.

The notes come with four years of call protection.

Proceeds will be used to repay revolver debt and for general corporate purposes.

Based in Andrezieux, France, the company produces specialty chemicals, such as water-soluble polymers.

Market readings mixed

Market indexes were mixed Friday, even as many desks were empty.

"Everybody has pretty much bailed," one trader said. Some market players were absent due to the Jewish holiday of Sukkot.

The trader also noted that overall volume was light, with under $1 billion in high-yield bonds trading, including emerging market names.

As for the KDP High Yield Daily Index, it moved up to 74.18 as the yield dipped below 6% to 5.94%. On Thursday, the index reading was 73.97 with a yield of 6.02%.

However, the CDX North American High Yield Index dropped 3/16 to 106¼ bid, 106 3/8 offered.

Springleaf inches higher

Springleaf Finance's 6.9% notes due 2017 were up slightly from the previous session, according to a trader.

He pegged the debt at 105 5/8.

The slight gain came on the heels of Tuesday's pricing of a $950 million two-tranche deal from the Evansville, Ind.-based consumer finance company. The new deal was being done concurrently with an exchange offer for $700 million of its 6.9% notes.

The new issues included a $650 million tranche of notes due Oct. 1, 2021 priced at par to yield 7¾% and a $300 million tranche of notes due Oct. 1, 2023 priced at par to yield 8¼%.

Commodity names give back

Commodity-related names were coming in a bit as the week came to an end, after seeing gains in the previous two sessions.

Oil company Denbury Resources Inc., however, managed to buck the trend as its 4 5/8% notes due 2023 moved up nearly half a point to close around 92 7/8.

Meanwhile split-rated, AngloGold Ashanti Holdings plc gave back some of the previous day's gains. The 5 1/8% notes due 2022 lost about a point to end at 85 3/8, while the 8½% notes due 2020 dropped 1¼ points to 1023/4.

AK Steel's 8 3/8% notes due 2022 were also softer, falling over 2 points to 84 3/8, according to a trader.

And, Arch Coal Inc.'s 7¼% notes due 2020 decline almost 1½ points to 80 1/4.

Big coupons firm

High-couponed bonds had a positive tone to them, according to a trader.

The trader saw First Data Corp.'s 12 5/8% notes due 2021 holding their ground at 1121/2, but Cenveo Corp.'s 11½% notes due 2017 rose a point to 971/4.

The trader also saw Lennar Corp.'s 12¼% notes due 2017 putting on a point to finish around 128 5/8.

Another market source called Cenveo's 11½% notes up a point at 97¼ bid.

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