Forward calendar builds; Cirsa trades up; Baffinland down slightly; Energizer active; TDC improves

By Paul A. Harris and Abigail W. Adams

Portland, Me., June 25 – The domestic and European primary market set the stage for a busy week with one euro-denominated deal pricing on Monday and the forward calendar filling in.

Teekay Offshore Partners LP and Teekay Offshore Finance Corp. is expected to price an upsized $600 million offering of five-year senior notes (Caa2/B/B) and Chaparral Energy Inc. a $300 million offering of five-year senior notes (Caa1/B-) on Tuesday.

PHI, Inc.’s $500 million offering of five-year senior secured notes (B3/B/B+) may also price on Tuesday, a market source said.

Nationstar began a roadshow on Monday for a $1.7 billion two-part offering of senior notes, which is expected to price late in the week.

Superior Plus Corp.’s $350 million offering of eight-year notes (Ba3/BB) is also expected to price before the week draws to a close.

AmWINS Group, Inc. started a Monday-to-Wednesday roadshow for a $300 million offering of eight-year senior notes (S&P: B-).

The European market saw the lone deal to price on Monday with Smurfit Kappa Group plc pricing an upsized €600 million issue of 7.5-year senior bullet notes (Ba1/BB+/BB+) at par to yield 2 7/8% in a drive-by.

Synthomer plc started a roadshow for a €300 million offering of seven-year senior notes, and Radisson Hospitality AB started a roadshow for a €250 million offering of five-year senior secured notes (B1//BB-).

While the market was soft on Monday, it was orderly with few dramatic price swings, a market source said.

Several recent deals remained active in the secondary space as the market awaits the steady pipeline of new deals on the calendar.

Cirsa Gaming Corp. SA’s 7 7/8% senior notes due Dec. 20, 2023 (B2/B+) continued to perform well in high-volume trading on Monday with the notes almost 3 points above their issue price.

The notes, which were the dollar-denominated tranche in a dual-currency three-part offering, “traded right up,” since pricing on Friday, a market source said.

Baffinland Iron Mines Corp.’s recently priced 8¾% senior notes due 2026 (Caa1/B-) saw a slight pullback on Monday and was down about ½ point. However, the pullback was in line with the general market and the notes were still almost 2 points above their issue price.

Energizer Holdings Inc.’s 6 3/8% senior notes due 2026 (B2/BB-) remained active in the secondary space with the notes down slightly.

TDC A/S’ recently priced 9 3/8% senior notes due 2023 (B3/B-/B-) were slightly improved.

Teekay Offshore upsizes

Teekay Offshore upsized their offering of five-year senior notes (Caa2/B/B) to $600 million from $500 million and set price talk at 8½% on Monday.

Official talk comes at the wide end of initial talk in the low to mid 8% area.

Books close at 11 a.m. ET Tuesday.

Brookfield Business Partners LP, with whom Teekay Offshore has a strategic relationship, along with Brookfield's co-investors, have committed to an order of up to $500 million of the notes, subject to a lockup agreement (see related story in this issue).

Chaparral talk 8% to 8¼%

Chaparral Energy talked its $300 million offering of five-year senior notes (Caa1/B-) to yield 8% to 8¼%.

Books close at noon ET Tuesday and the deal is set to price Tuesday afternoon.

Elsewhere, PHI could price its $500 million offering of five-year senior secured notes (B3/B/B+) on Tuesday, a trader said.

Most recent talk is in the 9¾% area, up from the mid 8% area to 9%, the source added.

Nationstar starts $1.7 billion

The forward calendar took aboard new deals on Tuesday.

Nationstar began a roadshow on Monday for a $1.7 billion two-part offering of senior notes.

The deal, which features five-year notes and eight-year notes, is set to price late in the June 25 week.

Credit Suisse, Jefferies, Deutsche Bank, Goldman Sachs and KKR are joint bookrunners for the buyout deal.

AmWINS starts roadshow

AmWINS Group started a Monday-to-Wednesday roadshow for a $300 million offering of eight-year senior notes (S&P: B-).

Goldman Sachs is the left bookrunner. Barclays, JP Morgan, Morgan Stanley and Wells Fargo are the joint bookrunners.

The Charlotte, N.C.-based specialty insurance broker plans to use the proceeds, together with proceeds from its term loans and cash on hand, to pay off its second lien credit facility and first lien revolving credit facility, as well as to fund a dividend and make payments to certain holders of stock options, related to the dividend.

Superior Plus whisper 6% area

In another deal that rolled out Monday, Superior Plus is expected to price $350 million of eight-year notes (Ba3/BB) before the end of the June 25 week.

Initial price talk is in the high 6% area.

Goldman Sachs is the bookrunner for the acquisition financing.

Smurfit upsizes

The European primary market also generated news on Monday.

Smurfit Kappa Group priced an upsized €600 million issue of 7.5-year senior bullet notes (Ba1/BB+/BB+) at par to yield 2 7/8% in a quick-to-market Monday trade.

The issue size was increased from €500 million.

The yield printed in the middle of the 2¾% to 3% yield talk.

Citigroup and NatWest were the global coordinators. Credit Agricole, Danske Bank and HSBC were the bookrunners.

The packaging company plans to use the proceeds to fund the acquisition of Reparenco Holding BV by SKG, with any remaining proceeds to be used for general corporate purposes which may include debt repayment.

Synthomer starts roadshow

Synthomer started a roadshow on Monday for a €300 million offering of seven-year senior notes.

Initial price talk is in the high 3% area.

The roadshow wraps up on Wednesday.

Global coordinator and active bookrunner Barclays will bill and deliver. Citigroup is also a global coordinator and active bookrunner. HSBC is a global coordinator and passive bookrunner. Commerzbank and SEB are bookrunners.

Radisson secured deal

Radisson Hospitality started a roadshow on Monday for a €250 million offering of five-year senior secured notes (B1//BB-).

The deal, which is being managed by JP Morgan, comes with initial price talk in the high 6% area to 7%.

The roadshow wraps up on Thursday.

The Brussels-based hotel group plans to use the proceeds to repay debt under its existing credit facilities and for general corporate purposes including its five-year operating plan, further investments and the creation of a liquidity buffer.

Cirsa trades up

Cirsa’s new 7 7/8% senior notes due 2023 continued to improve on Monday after a strong market debut out of the gate.

The notes, which priced at 95.747 on Friday, traded up to 98¼ on Monday in heavy trading volume, a market source said.

The notes were trading out of the gate on Friday at 97¾. “It’s doing really well,” a market source said.

Cirsa priced the 7 7/8% notes on Friday as part of a €1.56 billion equivalent dual-currency three-tranche offering.

Cirsa priced $550 million of the 7 7/8% notes at 95.747 to yield 8 7/8%. The yield printed at the tight end of final talk in the 9% area. Initial talk was in the 8% area.

Cirsa also priced a €425 million tranche of three-month Euribor plus 575 basis points floating-rate notes and a €663 million tranche of 6¼% notes which priced at 97.749 to yield 6¾%.

The deal was restructured prior to pricing. It was brought to the market in connection with Cirsa’s acquisition by the Blackstone Group, which was approved by the European Commission on June 18.

Baffinland backs off

Baffinland’s recently priced 8¾% senior notes due 2026 saw a slight pullback on Monday after a strong performance after breaking for trade on Friday.

The notes were down about ½ point to 101, a market source said. The trading frenzy surrounding the notes died down on Monday.

The 8¾% notes were not active after dominating trading activity in the secondary space on Friday.

Baffinland priced an upsized $575 million offering of the 8¾% notes at 99.282 to yield 8 7/8% on Friday.

The deal was well oversubscribed with orders 1.5 times the original $550 million deal size, a market source said.

Energizer keeps going

Energizer’s recently priced 6 3/8% senior notes due 2026 remained active in the secondary space and were seen as unchanged to slightly improved.

The notes were seen at 101 5/8 bid, 101 7/8 offered on Monday with most trades between 101½ and 101 5/8, sources said.

The 6 3/8% notes were seen at 101¾ bid, 102 1/8 offered on Friday with most trades between 101 5/8 and 101 7/8.

The notes continued to see steady trading volume on Monday. The 6 3/8% notes have been active since pricing on June 21 as part of a dual-currency deal.

TDC improves

While Energizer’s new notes were down slightly on Monday, TDC’s 9 3/8% senior notes due 2023 were slightly improved.

The 9 3/8% notes were seen at 101¼ bid, 101¾ offered on Monday. They were seen at par ¾ bid, 101 1/8 offered on Friday.

TDC priced the 9 3/8% notes at par on June 21. The notes were also part of a dual-currency deal.

Indexes down

Benchmarks for the high-yield secondary market closed Monday with losses.

After remaining flat for two consecutive trading days, the KDP High Yield index was down 6 basis points to 70.75 with the yield now 5.77%.

The index closed last week at 70.81, which was unchanged from Thursday.

The CDX High Yield 30 index saw a significant drop on Monday which was more than double its gains from Friday.

The index was down 39 bps to close Monday at 106.25, wiping out its 17 bps gain on Friday. The index was down 25 bps on Thursday.

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