Gibson Energy add-on prices; iStar, Gates Global, Chesapeake oilfield services unit slate deals

By Paul Deckelman and Paul A. Harris

New York, June 9 – The new week opened on a quiet note on Monday with just one smallish dollar-denominated junk bond offer coming to market during the session – a quickly shopped add-on to an existing Gibson Energy Inc. issue, part of a larger two-part transaction that also included a Canadian-dollar tranche.

However, high-yield syndicate sources said that that Junkbondland’s forward calendar was shaping up notably on Monday, with a trio of new dollar deals being shopped around, including megadeal-sized offerings from New York-based real estate finance and investment company iStar Financial Inc. and from Gates Global LLC, the latter deal in support of the pending leveraged buyout of the Denver-based industrial manufacturer by the Blackstone Group LP.

Sources also heard that Chesapeake Energy Corp.’s soon-to-be spun off oilfield services unit will be offering an eight-year deal, expected to price later in the week.

Traders said there was just a little bit of aftermarket activity going on in recently priced new deals, including Friday’s offering from alternative financial services provider DFC Global Corp. and Thursday’s issues from paper packaging manufacturer Cascades Inc. and natural gas pipeline operator Southern Star Central Corp.

And they saw little real conviction in dealings in the non-new-deal segment of the market.

However, statistical market performance indicators were higher for a third straight session on Monday. They had also firmed on Thursday and Friday, after having turned mixed last Tuesday and Wednesday.

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