Icahn megadeal leads busy day, caps $13 billion week; new deals active; oil names surge

By Paul Deckelman and Paul A. Harris

New York, Dec. 1 – The high-yield primary market closed out the November-December crossover week – and moved into the homestretch for 2017 – with a flourish on Friday as five issuers brought six tranches of dollar-denominated and fully junk-rated issues to market, pricing a total of $2.52 billion of paper.

Diversified holding company Icahn Enterprises LP had the big deal of the day, selling $1.26 billion of new paper in two tranches – an add-on to its existing 6¼% notes due 2022 and a new stand-alone issue of 2025 notes. Both tranches were upsized after plans for a proposed third tranche were abandoned.

Boiler-room equipment manufacturer Cleaver-Brooks, Inc. priced a downsized $375 million offering of 5.25-year notes.

Canadian precious stones mining company Mountain Province Diamonds Inc. brought $330 million of five-year secured notes to market.

There were also considerable dealings in recently priced offerings such as NRG Energy, Inc. and Rexnord Corp.

Away from the new issues, energy sector names like California Resources Corp., Denbury Resources, Inc. and Sanchez Energy Corp. firmed smartly in line with a second straight upturn in world oil prices.

Statistical market performance measures were mixed on Friday for the fourth time in the last five sessions, after trending higher on Thursday.

And they ended the week mixed versus where they had closed out last week.

© 2015 Prospect News.
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