High Yield Calendar: $3.7 billion deals being marketed

Aug. 1 Week

AVON INTERNATIONAL OPERATIONS INC., a subsidiary of AVON PRODUCTS, INC.: $400 million senior secured notes due 2022 (Ba1/BB-); BofA Merrill Lynch; Rule 144A and Regulation S; proceeds, along with cash on hand, to fund the tender for the 5¾% notes due 2018, the 4.2% notes due 2018, the 6½% notes due 2019 and the 4.6% notes due 2020; New York-based manufacturer and marketer of beauty care products; initial guidance 8% area; pricing expected Thursday.

ENGILITY CORP.: $380 million eight-year senior notes (Caa1/B-); Morgan Stanley & Co. LLC, Barclays, SunTrust Robinson Humphrey Inc., Regions, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Jefferies LLC (joint); Rule 144A with registration rights; make-whole call for first three years, then callable at par plus 75% of coupon; to refinance debt; Chantilly, Va.-based provider of integrated services for the U.S. government; roadshow started Aug. 2; initial guidance 9¼% area yield context; possibly pricing Thursday.

SPX FLOW, INC. $600 million two-part senior notes (B1/BB); BofA Merrill Lynch (left books): Eight-year notes with three years of call protection, guidance 5¾% area, HSBC, Scotia Capital, Deutsche Bank Securities Inc. (joint), Credit Agricole CIB, BBVA (senior co’s), J.P. Morgan Securities LLC, Commerzbank (co’s), Also 10-year notes with five years of call protection, guidance 6% area, JPMorgan, SunTrust Robinson Humphrey, MUFG (joint), Commerzbank, SMBC Nikko (senior co’s), HSBC, Deutsche Bank Securities Inc. (co’s); Rule 144A and Regulation S; proceeds, together with borrowings under its domestic revolver, to repurchase and/or redeem and retire the $600 million outstanding 6 7/8% senior notes due 2017 via concurrently announced tender offer; Charlotte, N.C.-based supplier of highly engineered flow components; pricing expected Thursday.

ADIENT GLOBAL HOLDINGS LTD.: $2 billion new notes (BB) in tranches of eight-year euro-denominated notes, initial guidance low 4% context, and 10-year dollar-denominated notes, initial guidance low 5% context, tranche sizes to be determined; dollar notes via Citigroup Global Markets Inc. (global coordinator), BofA Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, MUFG, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC (joint books), Banca IMI, Barclays, BBVA Securities Inc., Commerzbank Capital Markets Corp., Credit Agricole-CIB, ING Financial Markets LLC, Standard Chartered Bank, TD Securities (USA) LLC, UniCredit Bank AG; euro notes via Barclays (billing and distribution), Credit Agricole, UniCredit (active books), Banca IMI, Commerzbank, ING, Citi (books), BofA Merrill Lynch, Goldman Sachs, Industrial and Commercial Bank of China, MUFG, TD, U.S. Bancorp, Wells Fargo (co-managers); Rule 144A and Regulation S for life; euro notes non-callable for life except for make-whole call at 50 basis points over Bunds; dollar notes non-callable for five years, make-whole at Treasuries plus 50 bps; Adient is automotive seating and interiors business of Milwaukee-based Johnson Controls Inc.; proceeds to help fund spin off along with a $3 billion credit facility, comprised of a $1.5 billion term loan A and a $1.5 billion revolver; roadshow started Monday in London, then Frankfurt and Paris on Tuesday, New York on Wednesday, Boston on Thursday.

On The Horizon

AMC ENTERTAINMENT HOLDINGS INC.: $675 million one-year bridge loan is Libor plus 600 bps with a 1% Libor floor, spread increases by 50 bps every three months until reaching a specified cap; part of $1.2 billion debt financing that includes $525 million term loan in addition to bonds; Citigroup Global Markets Inc.; to help fund its acquisition of Odeon & UCI Cinemas Group, expected to close in the fourth quarter of 2016; Leawood, Kan.-based AMC and London-based Odeon & UCI are theatre exhibitors.

CORUS ENTERTAINMENT INC. C$300 million seven-year senior notes (/B+/DBRS: B high); RBC Capital Markets, TD Securities; non-callable for three years; to fund proposed C$2.65 billion acquisition of Calgary, Alta.-based television broadcaster Shaw Media Inc., expected to close in the third quarter of 2016; financing also includes C$2.3 billion committed credit facilities from RBC Capital Markets; Corus Entertainment is a media and entertainment company based in Calgary; early guidance 8% area; roadshow was expected to start Feb. 16.

DIAMOND RESORTS INTERNATIONAL, INC.: $600 million eight-year senior notes (Caa1/CCC+); RBC Capital Markets (left books), Barclays, Jefferies LLC (joint books), PSP, Natixis (co's); non-callable for three years; to help fund the LBO by Apollo Global Management LLC; also $1.3 billion credit facility; Las Vegas-based hospitality and vacation ownership company; roadshow Aug. 1-4 (deal is delayed pending earnings re-statement, sources say).

pulled because of earnings, re-state some numbers, hoping to get it done this week, could get pushed until after Labor Day; 10¼-10½; restating numbers going back to 2014 (inventory)

DYNEGY INC. and ENERGY CAPITAL PARTNERS: $1.85 billion secured debt facility, a portion of which can be moved into bonds; to help fund the acquisition of Engie’s U.S. fossil portfolio; indicative pricing on the term loan is Libor plus 525 bps with the ability to flex up by about another 275 bps, at 98 indicative OID; other funds for the acquisition will come from a $400 million junior bridge provided by Energy Capital and $1.19 billion in equity from Dynegy and Energy Capital (bridge priced at 11% with a PIK option); Dynegy is a Houston-based energy company.

ENTRANS INTERNATIONAL, LLC and ENTRANS INTERNATIONAL FINANCE CORP.: $250 million senior secured notes due 2020 (B2/B); Credit Suisse Securities (USA) LLC (sole); Rule 144A and Regulation S for life; callable after three years at par plus 50% of the coupon; three-year 40% equity clawback; 101% poison put; to refinance debt; Cleveland, Tenn.-based manufacturer of tanker trailers and industrial equipment.

EXAMWORKS GROUP INC.: $340 million eight-year senior notes; BofA Merrill Lynch, Barclays, Deutsche Bank Securities Inc. and SunTrust; also $920 million credit facility; help fund buyout by Leonard Green & Partners LP; Atlanta-based provider of independent medical examinations, peer reviews, bill reviews, Medicare compliance, case management and related services; expected June business.

INTELLECTUAL PROPERTY & SCIENCE: New bonds via BofA Merrill Lynch, also new bank debt; to help fund the $3.55 billion acquisition by Onex Corp. and Baring Private Equity Asia from Thomson Reuters, expected to close during 2016; Credit Suisse Securities (USA) LLC and RBC Capital Markets are also leads on the debt; also about $1.6 billion in equity; Philadelphia-based provider of comprehensive intellectual property and scientific information, decision support tools and services.

LIONSGATE: $3.6 billion bond and bank financing; J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Deutsche Bank; to pay the $1.6 billion cash consideration for the Starz acquisition, expected to close by the end of 2016, and to refinance about $1.7 billion to $1.9 billion of debt at both companies; also $1 billion revolver; Lionsgate is a Santa Monica, Calif.-based entertainment company; Starz is an Englewood, Colo.-based media and entertainment company.

MTS SYSTEMS CORP.: $250 million senior unsecured bridge loan to be taken out with $250 million senior notes; J.P. Morgan Securities LLC (left lead), Wells Fargo Securities LLC (joint lead), U.S. Bank, HSBC Bank (co-documentation agents); to fund the $580 million acquisition of PCB Group Inc., expected to close before Oct. 1; MTS is an Eden Prairie, Minn.-based supplier of high-performance test systems and position sensors; PCB is a Depew, N.Y.-based designer, manufacturer and distributor of sensor technologies.

STERIGENICS-NORDION HOLDINGS LLC: $120 million senior secured notes (B1/B); to help fund the acquisition of Nelson Laboratories Inc. and for general corporate purposes; Oak Brook, Ill.-based provider of sterilization services; expected April business.

SUNOPTA FOODS INC.: $300 million senior secured second-lien notes due 2023; Rule 144A and Regulation S; proceeds, together with borrowings under its senior secured asset-based revolving credit facility, to repay in full the term loans outstanding under the second-lien loan agreement, dated Oct. 9, 2015, borrowed in connection with the acquisition of Sunrise Holdings (Delaware), Inc., the direct parent company of Sunrise Growers, Inc.; Toronto-based company focused on organic, non-genetically modified ("non-GMO") and specialty foods; syndicate names and timing pending (last October the company postponed $330 million seven-year secured second-lien notes, via BMO, Jefferies and Rabobank, due to market conditions, talked at a discount to yield 10%).

TEEKAY OFFSHORE PARTNERS LP: $250 million minimum bonds due in 2018 and 2019 to be offered in the U.S. and Norwegian markets, expected to receive third-party credit ratings as energy markets improve; to refinance debt; Hamilton, Bermuda-based provider of marine transportation, oil production, storage, towage and maintenance and safety services to the oil industry; announced in June 17, 2016 press release.

U.S. XPRESS ENTERPRISES INC.: $320 million eight-year senior notes (B3/B+); J.P. Morgan Securities LLC, Wells Fargo Securities LLC (joint); non-callable for three years; to repay term loan and 2007 restated term loan; Chattanooga, Tenn.-based intermodal freight company.

Roadshows

Aug. 1-4: ADIENT GLOBAL HOLDINGS LTD.: $2 billion.

Started Aug. 2: ENGILITY $380 million; Morgan Stanley, Barclays, SunTrust, Regions, Deutsche Bank, JPMorgan, Jefferies.

Pricing expected Aug. 1 week: AVON $400 million; BofA Merrill Lynch.

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