Altice, Twin River price; VistaJet, PPD on tap; EG Group, CDK trade up; CRC rebounds

By Paul A. Harris and Abigail W. Adams

Portland, Me., May 3 – The high-yield primary market rounded out an active week with several deals pricing on Friday and more joining the forward calendar.

Altice Luxembourg SA priced €2.8 billion equivalent of eight-year senior notes (Caa1/B-) in two tranches.

Twin River Worldwide Holdings, Inc. priced an upsized $400 million issue of eight-year senior notes (B3/B) at par to yield 6¾%.

JPW Industries, Inc. priced $60 million of notes which mirror its 9% senior secured notes due Oct. 1, 2024 (B3/B) at 88 to yield 12.804%.

And Gogo Inc. priced a $20 million add-on to the Gogo Intermediate Holdings LLC 9 7/8% senior secured notes due May 1, 2024 at 100.5 to yield 9.743%.

The May 6 week also promises to be an active one with VistaJet Malta Finance plc planning to market a $525 million offering of five-year senior notes and Pharmaceutical Product Development, LLC (PPD) expected to kick off a $900 million offering of unsecured notes.

Meanwhile, the secondary space closed out the week on firm footing with new paper and earnings-related news continuing to drive trading activity.

EG Group’s newly priced 6¾% senior notes due 2025 and CDK Global, Inc.’s 5¼% senior notes due 2029 were both trading at a premium to their issue price.

After taking a hit on plummeting crude oil futures on Thursday, California Resources Corp.’s 8% senior notes due 2022 rebounded following a first-quarter earnings beat.

Altice refinances

A big Friday session saw Altice Luxembourg price €2.8 billion equivalent of eight-year senior notes (Caa1/B-) in two tranches.

The debt refinancing deal included $1.6 billion of dollar-denominated notes that priced at par to yield 10½%. The yield printed in the middle of yield talk in the 10½% area.

In addition, Altice Luxembourg priced €1.4 billion of euro-denominated notes launched at par to yield 8%, at the rich end of spread talk that had them coming 225 basis points to 250 bps inside of the dollar-denominated notes.

Demand for the paper was robust, sources said.

There were $3.7 billion of orders for the dollar-denominated notes and €3.2 billion for the euro paper, an investor said.

Goldman Sachs & Co. LLC was the left bookrunner.

Twin River upsizes

Twin River Worldwide Holdings priced an upsized $400 million issue of eight-year senior notes (B3/B) at par to yield 6¾%.

The issue size increased to $400 million from $350 million. The concurrent bank loan was decreased to $300 million from $350 million.

The yield printed at the tight end of 6¾% to 7% yield talk, and inside of initial guidance in the 7% area.

Credit Suisse Securities (USA) LLC was the left bookrunner.

The Lincoln, R.I.-based owner and operator of gaming and racing facilities will use proceeds to repay its credit facility and for general corporate purposes.

JPW prices cheap

JPW Industries priced a $60 million issue of notes which mirrors its 9% senior secured notes due Oct. 1, 2024 (B3/B) at 88 to yield 12.804%.

The coupon came on top of coupon talk. The issue price came cheap to price talk in the 90 area.

Goldman Sachs was the bookrunner.

The La Vergne, Tenn.-based company plans to use the proceeds, together with an equity investment and borrowings under its ABL facility, to fund the Baileigh Industrial, Inc. acquisition consideration, as well as to repay existing debt of Baileigh.

Gogo prices $20 million tap

Gogo priced a $20 million add-on to the Gogo Intermediate Holdings LLC 9 7/8% senior secured notes due May 1, 2024 at 100.5 to yield 9.743%.

Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC were the joint bookrunners.

The Chicago-based provider of inflight internet services plans to use the proceeds for general corporate purposes.

VistaJet roadshow

The primary market is expected to remain busy in the May 6 week.

VistaJet Malta Finance plans to commence marketing a $525 million offering of five-year senior notes on Monday.

Credit Suisse is the left bookrunner.

The company, which is headquartered in the Malta International Airport, in Malta, plans to use the proceeds to repay bank and bond debt.

PPD $900 million expected

Pharmaceutical Product Development is expected to kick off a $900 million offering of unsecured notes during the May 6 week.

JPMorgan will lead the deal, which may come with an eight-year maturity.

The Wilmington, NC-based contract pharmaceutical research services provider is expected to use at least a portion of the proceeds to fund a dividend, the source said.

EG Group trades up

EG Group’s 6¾% senior notes due 2025 were making gains in secondary trading on Friday. The notes were seen at par 7/8 bid, 101 3/8 offered in the midafternoon.

EG Group priced a $750 million tranche of the 6¾% notes at par on Thursday as part of a €1.64 billion equivalent three-tranche offering.

The notes priced at the tight end of the 6¾% to 7% yield talk.

The deal also included a €300 million tranche of 3 5/8% notes due 2024 and a €670 million tranche of 4 3/8% notes due 2025, both of which priced at par.

CDK Global at a slight premium

CDK Global’s newly priced 5¼% senior notes due 2029 were trading more than 1 point above their issue price in the secondary space.

The notes were seen at 101 3/8 bid, 101 5/8 offered in the midafternoon, according to a market source.

CDK Global priced a $500 million issue of the 5¼% notes at par in a Thursday drive-by.

The yield printed in the middle of yield talk in the 5¼% area.

California Resources rebounds

California Resources’ 8% senior notes due 2022 saw a large rebound in the secondary space on Friday after taking a hit alongside the general energy sector the day before.

The notes rose more than 3 points, sources said. They were seen at 77 bid, 77¾ offered in the midafternoon and closed the day at 77½, sources said.

The 8% notes dropped 2¼ points to close Thursday at 74¼ with crude oil futures down nearly 3%.

While the 8% notes typically move in line with crude oil futures, they jumped on Friday following a first-quarter earnings beat.

California Resources posted a large earnings beat with non-GAAP earnings per share of 63 cents versus analyst expectations for a loss per share of 31 cents.

California Resources reported adjusted EBITDAX of $301 million and average daily production of 133,000 barrels of oil equivalent.

Adjusted EBITDAX per barrel of oil equivalent was the highest it has been since 2015, according to a company news release.

Indexes gain

Indexes closed out the week with gains although they were mixed on the week.

The KDP High Yield Daily index rose 11 bps to close Friday at 70.40 with the yield now 5.76%.

The index was down 10 bps on Thursday, was flat on Wednesday, slipped 1 bp on Tuesday and another 1 bp on Monday.

The index was largely flat on the week after posting a cumulative loss of 1 bp.

The ICE BofAML US High Yield index gained 14.7 bps with the year-to-date return now 8.905%.

The index dropped 19.7 bps on Thursday, gained 5.1 bps on Wednesday, 5.5 bps on Tuesday and 9.8 bps on Monday.

The index saw a cumulative gain of 15.4 bps on the week.

The CDX High Yield 30 index rose 29 bps to close Friday at 107.68. The index was down 7 bps on Thursday, 18 bps on Wednesday, rose 5 bps on Tuesday and dropped 11 bps on Monday.

The index was also largely flat on the week after posting a cumulative loss of 2 bps.

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