AmeriGas drives-by; Griffin Global joins calendar; Venture Global adds; PDC Energy jumps on buyout

By Abigail W. Adams

Portland, Me., May 22 – The domestic high-yield bond primary market stood poised for another active week with four deals on the forward calendar and one drive-by issue pricing during Monday’s session.

AmeriGas Partners LP and AmeriGas Finance Corp.’s $500 million offering of five-year senior notes (B1//BB-) was the sole issue to price during Monday’s session.

However, the forward calendar continued to build with Griffin Global Asset Management subsidiary GGAM Finance Ltd. starting a roadshow for a $1 billion two-tranche offering of three-year and five-year senior bullet notes that will run through Wednesday.

Olympus Water US Holding Corp.’s (Solenis) $2.125 billion equivalent two-tranche offering of long five-year senior secured notes backing the acquisition of Diversey Holdings Ltd. is expected to price during Tuesday’s session with an anticipated upsize for the dollar-denominated tranche.

Meanwhile, a slow, flat start to the day gave way to a strong finish with the cash bond market adding ¼ point as the market eyes debt-ceiling negotiations.

Venture Global LNG Inc.’s two tranches of senior secured notes (B1/BB/BB-) dominated activity in the space with the notes continuing to add after a healthy break.

However, PDC Energy, Inc.’s 5¾% senior notes due 2026 (Ba3/BB) were the major winners of the session with the notes jumping higher after Chevron announced its $7.6 billion acquisition of the company.

AmeriGas drives-by

AmeriGas priced $500 million of five-year senior notes (B1//BB-) in a Monday drive-by at par to yield 9 3/8%.

Pricing came at the wide end of talk for a yield in the 9¼% area. Early guidance was for a yield in the low 9% area.

The notes were trading at a nominal premium after freeing for trade with the notes marked at par bid, par ¼ offered heading into the close, a source said.

The calendar

While only one deal priced on Monday, the calendar continued to grow with Griffin Global subsidiary GGAM Finance starting a roadshow for a $1 billion offering of three-year and five-year notes.

The roadshow is scheduled to run through Wednesday with pricing expected thereafter.

The market is expecting Solenis’ $2.125 billion equivalent two-tranche offering of long five-year senior secured notes to price on Tuesday.

While official price talk and timing had not yet circulated the market, the books were heard to be around deal size.

The dollar-denominated tranche was heard to be upsizing to $1.85 billion from the initial $1.625 billion and the euro-tranche downsizing, according to a market source.

Guidance remains in the high 8% area.

Venture Global adds

Venture Global’s new secured notes dominated activity in the secondary space on Monday with the notes continuing to add after a healthy break.

The 8 1/8% senior secured notes due 2028 and 8 3/8% senior secured notes due 2031 were changing hands in the par ½ to par ¾ context in heavy volume early in the session.

The 8 1/8% senior notes due 2028 continued to trade in a tight range in the par ½ to par ¾ context throughout the session.

However, the 8 3/8% notes continued to gain steam with the notes closing the day at 101, up 3/8 to ½ point, a source said.

The 8 1/8% notes saw $69 million and the 8 3/8% notes saw $82 million in reported volume during the session.

The LNG producer and exporter priced a $2 billion tranche of the 8 1/8% notes and a $2 billion tranche of the 8 3/8% notes at par on Friday.

The 8 1/8% notes priced in the middle of talk for a yield of 8% to 8¼%; the 8 3/8% notes priced in the middle of talk for a yield of 8¼% to 8½%

PDC Energy’s buyout

PDC Energy’s 5¾% senior notes due 2026 were the major winners of Monday’s session after Chevron announced it was acquiring the oil and gas company in an all-stock deal with an enterprise value of $7.6 billion.

The 5¾% notes jumped 4 points to a par-handle.

They were changing hands in the par ½ to par ¾ context throughout the session, according to a market source.

There was $15 million in reported volume.

The notes appeared to be trading up to their 101 poison put, a source said.

Indexes

The KDP High Yield Daily index gained 4 points to close Monday at 50.35 with the yield 7.42%.

The index posted a cumulative loss of 30 points on the week last week.

The ICE BofAML US High Yield index gained 23.9 bps with the year-to-date return now 4.028%.

The index posted a cumulative loss of 48.7 bps on the week.

The CDX High Yield 30 index gained 49 bps to close Monday at 100.76.

The index posted a cumulative gain of 14 bps on the week last week.

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