Upsized Level 3, other drive-bys pace $2.5 billion session; Windstream busy on REIT plan

By Paul Deckelman and Paul A. Harris

New York, July 29 – After a sleepy Monday, the high-yield primary sphere sparked on Tuesday, with some $2.5 billion of new dollar-denominated, fully junk-rated paper pricing in six tranches.

Tuesday’s big deal was an upsized $1 billion offering of eight-year notes from Level 3 Communications, Inc. via a funding subsidiary. But despite brisk aftermarket volume, the deal failed to generate much investor enthusiasm, trading a little below its issue price.

Universal Health Services, Inc. did a two-part, $600 million offering of five-year and eight-year notes, while Ladder Capital Finance Corp. priced an upsized $300 million issue of seven-year notes via a financing subsidiary.

Consol Energy Inc. did an upsized $250 million add-on to its existing 2022 notes. And Compressco Partners, LP priced $350 million of eight-year notes, the only deal marketed via a roadshow rather than a same-day offering.

Consol’s offering was quoted slightly above its issue price. Other than Level 3 and Consol, the day’s other pricings were not seen in the aftermarket.

Away from the new issues, there was substantial activity Tuesday in Windstream Corp.’s bonds after the company announced plans to spin off some assets and cut a significant portion of debt.

Radiation Therapy Services Inc.’s bonds were better after the company, now 21st Century Oncology Holdings, Inc., reached agreements with its noteholders on support for a recapitalization plan.

© 2015 Prospect News.
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