Category: Debtwire

McDermott bond guidance drifts even wider, syndication expected to extend into next week

McDermott’s high yield bond arrangers circulated pricing indications today for an all-in yield around 11.125%, after setting official talk yesterday at 10.5%, said three buysiders following the deal. The heftier yield on the proposed USD 1.3bn six-year unsecured note would be achieved through a 10.625% coupon and a 98 OID, two of the sources said. The…

Read more McDermott bond guidance drifts even wider, syndication expected to extend into next week

Frontier deal tees up more strategies targeting high coupon, restrictive CTF notes

Frontier Communications’ new USD 1.6bn 8.5% second lien bond raise sets the stage for management and investors to plot out scenarios under which the company can redeem certain high coupon bonds restricting the balance sheet, according to four buysiders. Proceeds from the second lien deal will be used to launch partial tenders for the borrower’s USD…

Read more Frontier deal tees up more strategies targeting high coupon, restrictive CTF notes

Basic Energy recap deal faces heightened scrutiny as high leverage, cyclicality weigh on investors

Basic Energy is struggling to entice investors into participating in its first lien recap deal amid weak oil & gas sector sentiment and concerns about the oilfield servicer’s high pro forma leverage, according to four sources tracking the deal. Potential investors also took issue with the borrower’s exposure to the highly cyclical oil pressure pumping business,…

Read more Basic Energy recap deal faces heightened scrutiny as high leverage, cyclicality weigh on investors

Bristow Group market tap clears out maturity path, but elevates leverage and cash burn

Bristow Group’s capital markets fly-by last week cleared out near-term maturities and added cash liquidity as the helicopter operator seeks to ride out the downturn in oil & gas drilling activity, according to multiple sources tracking the company. But the secured offering – an upsized USD 350m 8.75% first lien note due 2023 – also…

Read more Bristow Group market tap clears out maturity path, but elevates leverage and cash burn

Indigo, Shelf recap deals underscore oil’s high yield resurgence

Newly minted bonds from Indigo Natural Resources and Shelf Drilling highlight a new burst of momentum for oil & gas names hitting the market, as crude price optimism opens the capital markets to some lower-quality, lesser-known borrowers to refinance or recapitalize their balance sheets, according to multiply energy analysts. With the crude price downturn still a recent memory, privately…

Read more Indigo, Shelf recap deals underscore oil’s high yield resurgence

PODCAST: New wave of energy deals gets mixed response from the primary market

The rise in oil prices has led to a slew of new primary market deals in the energy sector. On Debtwire’s first primary market-focused podcast of 2018, we dissect this trend by going through some of the unique aspects of recent offerings from the likes of Moss Creek Resources and Woodford Express. The discussion also reaches back…

Read more PODCAST: New wave of energy deals gets mixed response from the primary market

Waste Pro USA cleans up in high yield debut, cuts roadshow short

Waste Pro USA has cut short the roadshow for its USD 450m debut high yield bond due to strong demand, according to several sources tracking the situation. The waste services company is expected to price the transaction inside official talk of 5.625%—and well inside earlier whispers of 6% area—on Thursday, the sources said. The Florida-based borrower…

Read more Waste Pro USA cleans up in high yield debut, cuts roadshow short

Oil fervor and high cash balances drive bullish start for high yield in 2018 — Primary Market Chatter

High yield investors have been spoilt for choice so far this year, with a broad range of issuers hitting the market either side of the Martin Luther King, Jr holiday weekend. But the deals on offer are also an indication of investors’ desperation for yield, as spreads continue to grind tighter. The strong start to…

Read more Oil fervor and high cash balances drive bullish start for high yield in 2018 — Primary Market Chatter