McGraw-Hill, Rex Energy lead $1.46 billion day; new Rex gains; Whiting, Kodiak climb

By Paul Deckelman and Paul A. Harris

New York, July 14 – Opportunity was the watchword of the day on Monday as a quartet of junk bond issuers each kicked off the new week with a quickly marketed deal, looking to take advantage of favorable issuance conditions to get their same-day fundings done.

High-yield syndicate sources said some $1.46 billion of new dollar-denominated and fully junk-rated paper came to market during the session in four tranches. That followed on the heels of Friday’s $1.21 billion that got done in three tranches.

The big deal of the day was Houston-based energy upstream master limited partnership Memorial Production Partners LP’s $500 million of eight-year notes, co-issued with a subsidiary.

Out of that same sector, Rex Energy Corp., a State College, Pa.-based exploration and production company, did an upsized $325 million of eight-year notes.

Away from energy, McGraw-Hill Global Education Intermediate Holdings, LLC brought $400 million of five-year senior PIK toggle notes to market via its parent company and a subsidiary.

And Cardtronics, Inc., a Houston-based global owner of ATM machines, tapped the market for $250 million with an eight-year note issue.

Market participants said the new Rex bonds firmed smartly.

Away from the new issues, bonds of established energy operators Whiting Petroleum Corp. and Kodiak Oil & Gas Corp. climbed in brisk trading on the news that Whiting will acquire sector peer Kodiak in an all-stock transaction valued at $6 billion, including debt assumption.

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