McDermott widens; Compass, Comstock start roadshows; energy sector down; recent deals up

By Paul A. Harris and Abigail W. Adams

Portland, Me., April 2 – After a busy week which saw about $5 billion in new deals price, the post-holiday calendar is starting to fill up with $2.63 billion in new deals expected.

McDermott International Inc.’s pricing of $1.3 billion in senior notes due 2024 (B2/B-), which was expected last week, was again delayed until Tuesday with price talk widening.

American Greetings Corp. is also expected to price $325 million of eight-year senior notes (Caa1/CCC+) on Tuesday.

Compass Diversified Holdings, LLC has launched an offering of $400 million in eight-year notes, which is expected to price later in the week.

Comstock Resources, Inc. also started a roadshow on Monday for a $600 million offering of senior notes, as part of a comprehensive refinancing, according to market sources.

Trading volume in the secondary market was light with most traders on “watch and wait mode,” as equity markets launched a tumultuous start to the month, a market source said.

After a week with some names in the energy sector seeing large gains, bonds in the energy sector were down about ½ point on Monday while the rest of the market remained largely flat.

While the market was largely flat, recent deals from Ply Gem Holdings Inc., Wyndham Hotels & Resorts, Inc. and W/S Packaging Holdings Inc. continued to trade well above their issue prices.

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