High-yield calendar sees midweek surge; market ends mixed; Denbury announces tender offer

By Stephanie N. Rotondo

Phoenix, April 16 - The high-yield bond market saw a surge of new issues Wednesday, but the secondary remained muted.

Endeavor Energy Resources LP and EER Finance Inc. brought to market $250 million of additional 7% senior notes due 2021. Rice Energy Inc. meantime priced $900 million of 6 ¼% senior notes due 2022.

Denbury Resources Inc. priced $1.25 billion of 5½% eight-year senior subordinated notes, upsized from $1.1 billion. The issue was gaining ground on the back of the news that the company was planning to conduct a cash tender offer for its 8¼% senior subordinated notes due 2020.

Market indicators were mixed on the day.

In junkier credits, NII Holdings Inc.'s 7 5/8% notes due 2021 were moderately active and better, despite any fresh news to act as a catalyst.

One market source placed the issue at 26, while another saw the notes trade as high as 27.

The latter source said that compared to 24¼ previously.

In early March, the Reston, Va.-based provider of Nextel mobile phone service in Latin America said it had hired UBS Investment Bank and Rothschild Inc. to review its strategic and financial options.

Meanwhile, Radioshack Corp.'s 6¾% notes due 2019 were several points weaker, according to a source. The source saw the notes at 44, which was down from 471/4.

Like NII Holdings, there was no news out to spur the movement.

But retailers in general were on the weaker side, even on the heels of news out Monday showing that retail sales were rebounding.

In a Commerce Department report published Monday, retail sales were seen gaining 1.1% in March, the largest monthly gain since September 2012.

Among other retailers, JCPenney Co. Inc.'s 5.65% notes due 2020 dropped over a point to 78¾ bid, a market source said.

Denbury upsized $1.25 billion

The news volume in the U.S. and European primary markets was intense on Wednesday.

In the dollar-denominated market, five issuers completed single-tranche deals to raise a combined total of $3.12 billion.

Executions were notable.

Of the four deals that saw price talk widely circulated, three came at the tight or rich end of talk, and the fourth came on top of talk.

Four of the five were upsized.

Three of the five came as a.m.-to-p.m. drive-bys.

Denbury Resources priced an upsized $1.25 billion issue of eight-year senior subordinated notes (B1/BB) at par to yield 5½% on Wednesday.

The quick-to-market deal was upsized from $1.1 billion.

The yield printed on top of yield talk.

Wells Fargo Securities LLC was the left bookrunner for the public offer. BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Credit Agricole CIB and RBC Capital Markets were the joint bookrunners.

The Plano,Texas-based independent oil and natural gas company plans to use the proceeds to fund the tender offer for its 8¼% senior subordinated notes due 2020, with any remaining proceeds to repay a portion of revolver debt or for general corporate purposes.

Rice Energy upsized and tight

Rice Energy priced an upsized $900 million issue of eight-year senior notes (B3/CCC+) at par to yield 6¼% on Wednesday, according to a syndicate source.

The deal was upsized from $750 million.

The yield printed at the tight end of the 6¼% to 6½% yield talk.

Barclays was the lead left bookrunner. Wells Fargo Securities, Goldman Sachs & Co., Citigroup Global Markets Inc. and RBC Capital Markets were the joint bookrunners.

The Canonsburg, Pa.-based oil and gas exploration and production company plans to use the proceeds to repay its second-lien term loan and for general corporate purposes, including capital expenditures.

Athlon upsized and tight

Athlon Energy Inc. priced an upsized $650 million issue of eight-year senior notes B3/CCC+) at par to yield 6% on Wednesday, according to a syndicate source.

The deal was upsized from $500 million.

The yield printed at the tight end of the 6% to 6¼% yield talk.

Citigroup Global Markets, BofA Merrill Lynch, Wells Fargo Securities and UBS Investment Bank were the joint physical bookrunners.

The Fort Worth-based independent oil and gas exploration and production company plans to use the proceeds to partially fund acquisitions of certain producing properties and undeveloped acreage.

To the extent that certain acquisitions don't close, the company will redeem $250 million of the notes at par plus accrued interest.

Proceeds resulting from the $150 million upsizing of the deal will be used for general corporate purposes.

The issuing entities were Athlon Holdings LP and its co-issuer and wholly owned subsidiary, Athlon Finance Corp.

Endeavor upsized and rich

Endeavor Energy Resources and EER Finance priced an upsized $250 million tack-on to their 7% senior notes due Aug. 15, 2021 (B3/B) at 104¾ to yield 5.942% on Wednesday, according to a syndicate source.

The deal was upsized from $100 million.

The reoffer price came at the rich end of the 104½ to 104¾ price talk.

Wells Fargo Securities, Credit Agricole Securities (USA) Inc., Mitsubishi UFJ Securities (USA) Inc. and U.S. Bancorp Investments Inc. were the joint bookrunners.

Proceeds will be used to repay the company's revolver, to fund development of acreage and for general corporate purposes.

The issuer is a Midland, Texas-based oil and gas exploration and production company.

Nine West add-on

Nine West Holdings, Inc. priced a $60 million add-on to its 8¼% senior notes due March 15, 2019 (Caa2/CCC) at 101 to yield 8.002% on Wednesday, according to an informed source.

Morgan Stanley & Co. ran the books.

The designer, marketer and wholesaler of apparel, footwear and accessories plans to use the proceeds to pay down its revolver.

Interactive Data for Thursday

Looking to the final session of the holiday-abbreviated pre-Easter week, Interactive Data Corp. plans to price a $200 million offering of five-year senior notes (expected ratings Caa2/B-) on Thursday.

Barclays is the lead left bookrunner for the Rule 144A and Regulation S for life deal. Goldman Sachs, BofA Merrill Lynch, Credit Suisse Securities, UBS Investment Bank, Deutsche Bank Securities Inc., Morgan Stanley and Wells Fargo Securities are the joint bookrunners.

The notes become callable after one year at 102 and feature an equity clawback for 100% of the issue at 102 during the first year with proceeds from a public equity offer.

The Bedford, Mass.-based provider of financial market data plans to use the proceeds to refinance its term loan B and senior notes and to fund a dividend.

CCG upsized and tight

The euro-denominated market was also cranking during its Wednesday session.

Three junk issues cleared, each one from a different issuer.

The combined take was €787 million.

Again, executions were notable, with two of the three deals upsizing and all three pricing at the tight or rich ends of talk.

Paris-based geoscience company CGG SA price an upsized €400 million issue of six-year senior notes (Ba3/B+) at par to yield 5 7/8% on Wednesday, according to a market source.

The deal was upsized from €360 million.

The yield printed at the tight end of yield talk in the 6% area.

Global coordinator BNP Paribas will bill and deliver. Credit Suisse was also a global coordinator. Credit Agricole, HSBC, Natixis and SG CIB were joint bookrunners.

The company plans to use the proceeds to finance an offer to repurchase its €360 million of Oceane convertible bonds due 2016, with remaining net proceeds, if any, to repay other debt.

Piaggio upsized and tight

Piaggio & Co. SpA priced an upsized €250 million issue of seven-year senior notes (expected Ba3/confirmed BB-) at par to yield 4 5/8% on Wednesday, according to a market source.

The deal was upsized from €200 million.

The yield printed at the tight end of yield talk in the 4¾% area.

Banca Imi, BNP Paribas, BofA Merrill Lynch, Mediobanca, UniCredit and HSBC were the joint bookrunners.

The Pontedera, Italy-based company is a maker of two-wheeled motor vehicles and compact commercial vehicles. The company plans to use the proceeds to refinance its notes due in 2016.

TeamSystem at the rich end

TeamSystem SpA priced a €130 million add-on to its 7 3/8% senior secured notes due May 15, 2020 (B2/B-) at 105¾ to yield 5.765% on Wednesday, according to a market source.

The reoffer price came at the rich end of the final 105½ to 105¾ price talk. Earlier guidance came in the 105½ area.

Global coordinator JPMorgan will bill and deliver. HSBC, UBS and UniCredit were joint bookrunners.

The Luxembourg-based software company plans to use the proceeds to finance the acquisition of 24Ore Software and for general corporate purposes.

Alain Afflelou for Thursday

France-based optical and eyewear company Alain Afflelou set price talk for its €440 million two-part offering of five-year notes on Wednesday, according to a market source.

A €365 million tranche of senior secured notes (/B/BB-), via 3AB Optique Developpement, is talked to yield in the 5¾% area.

A €75 million tranche of senior unsecured notes (/CCC+/CCC+), via Lion/Seneca France 2, is talked to yield 7¾% to 8%.

The deal is expected to price on Thursday.

Global coordinator JPMorgan will bill and deliver for the Rule 144A and Regulation S for life offer.

Credit Suisse, UniCredit, Credit Agricole and BNP Paribas are joint bookrunners.

The notes in both tranches come with 1.5 years of call protection.

Proceeds will be used to refinance debt.

Market mixed

The KDP High Yield index was again softer on Wednesday, but the CDX North American High Yield index was up.

The KDP reading came in at 74.96, with a 5.2% yield. On Tuesday, the yield was the same, but pricing was at 75.

As for the CDX index, a source called that up almost a quarter-point at 106 7/8 bid, 107 offered.

Denbury plans tender

Denbury Resources' 8¼% notes got a boost Wednesday, as the Plano, Texas-based oil and gas company announced a cash tender for the debt.

One trader placed the issue around 1101/4. That level was echoed by another source who said that was up from 109 1/8 on Tuesday.

The 4 5/8% notes due 2023, however, were a touch weaker at 94 3/8 bid, 94¾ offered.

Holders that tender their notes by 5 p.m. ET on April 29 will receive $1,101.58 per each $1,000 of debt validly tendered. If that deadline is missed, but the tender expiration date of 11:59 p.m. ET on May 13 is met, holders will get $1,071.58 per $1,000 of notes.

The offer is contingent upon the company raising at least $1.1 billion of new senior subordinated debt.

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