New issue activity muted; PHI drops as new deal faces hurdles; Callon reaches new low

By Paul A. Harris and Abigail W. Adams

Portland, Me., June 19 – New issue activity in the domestic and primary market remained muted on Tuesday as the threat of a trade war between China and the United States roiled the global capital markets.

While no new paper entered the space, the forward calendar continued to fill in with several deals slated to price before the week comes to a close.

Enterprise Development Authority began a roadshow for a $440 million offering of five-year senior secured notes.

Three high profile dual-currency dollar/euro deals from Energizer Holdings Inc., TDC A/S and Cirsa Gaming Corp. are also expected to price before the week comes to a close.

The European market did see a small add-on price.

Schmolz + Bickenbach AG priced a €150 million add-on to the Schmolz + Bickenbach Luxembourg Finance SA 5 5/8% senior secured notes due July 15, 2022 (S&P: B+) at 101.50.

While fear of a pending trade war may have muted new deal activity on Tuesday, it had little impact on the secondary space.

While the overall market remained firm, PHI Inc.’s 5¼% senior notes due 2019 dropped about 2 points as the company’s new debt refinancing deal struggles.

Callon Petroleum Co.’s recently priced 6 3/8% senior notes due 2026 (B3/B+) dropped about ½ point on Tuesday to reach a new low of about 98 7/8, according to a market source.

© 2015 Prospect News.
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