Targa prices first deal of the year; PG&E continues to dominate; Altice on the rise

By Paul A. Harris and Abigail W. Adams

Portland, Me., Jan. 10 – The high-yield primary market returned after a nearly six-week hiatus with one drive-by deal clearing the market.

Targa Resources Partners LP and Targa Resources Finance Corp. priced an upsized $1.5 billion amount of senior notes (Ba3/BB) in a quick-to-market late Thursday trade.

The deal was in high-demand and nearly doubled in size, sources said.

Meanwhile, the secondary space remained active with Pacific Gas & Electric Co.’s senior notes continuing to lead the charge.

After rebounding on Wednesday, Pacific Gas & Electric’s bonds were mixed on Thursday as Moody’s Investors Service followed S&P’s lead and downgraded the struggling utility company to junk.

California Resources Corp.’s 8% senior notes due 2022 gave back some of their gains on Thursday as crude oil futures showed signs of weakening during Thursday’s session.

Weatherford International plc’s 9 7/8% senior notes due 2024, Chesapeake Energy Corp.’s 8% senior notes due 2025 and EP Energy’s 9 3/8% senior notes due 2024 were also losing ground on Thursday.

Altice SA’s 7¾% senior notes due 2022 were on the rise in active trading on Thursday as consolidation rumors around Altice France continue to swirl.

Envision Healthcare Corp.’s 8¾% senior notes due 2026 were losing ground in high volume activity on Thursday.

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