Netflix prices $2 billion equivalent; Transocean trades down; Tesla gains; Hi-Crush drops

By Paul A. Harris and Abigail W. Adams

Portland, Me., Oct. 23 – The primary market rolled out Netflix, Inc.’s highly-anticipated offering on Tuesday with the secondary space soft amid a sell-off in equities and tanking oil futures.

Netflix priced approximately $2.06 billion of 10.5-year senior notes (Ba3/BB-) in two tranches on Tuesday.

Despite a down day for the market, the dollar-denominated tranche was strong out of the gate and closed the day above issue price.

However, Transocean Inc.’s newly priced 7¼% senior notes due 2025 dropped in the secondary space with the notes down 2 points from their issue price in intraday trading.

While Tuesday was a rough day for the oil and gas sector, the notes’ poor performance was more specific to the deal, a market source said.

With oil futures down over $3 in intraday trading, California Resources Corp.’s 8% senior secured second-lien notes due December 2022 were active and losing ground.

Hi-Crush Partners LP’s 9½% senior notes due 2026 continued to see high trading volume with the notes giving up their previous gains and dropping in the wake of the company’s third-quarter earnings report.

Tesla Inc.’s 5.3% senior notes due 2025 were one of the rare gainers during Tuesday’s session with the notes up more than 1 point after a short-seller announced he was going long in the electric car manufacturer.

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