Envision Healthcare eyed; California Resources remains in focus; Comstock gains

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 22 – The domestic primary market was again dormant on Wednesday with the sole new issue activity belonging to the Nordic market.

Teekay LNG Partners L.P. priced NOK 850 million (approximately $100 million) of five-year senior unsecured bonds on Wednesday.

Iceland-based low-cost air carrier WOW Air is seeking to place three-year senior secured floating-rate notes that will be issued as either euro- or Swedish krona-denominated bonds.

While no new deal activity is expected from the domestic primary market until after Labor Day, market sources are eyeing the anticipated $2.15 billion offering from Envision Healthcare Corp.

The anticipated Envision Healthcare deal is reminiscent of BMC Software’s 9¾% senior notes due 2026 (Caa2/CCC+) which was also an LBO deal driven by KKR’s acquisition of the company.

Meanwhile, trading volume remained light in the secondary space.

California Resources Corp.’s 8% senior secured second-lien notes due December 2022 remained active in the secondary space as the price of West Texas intermediate crude oil for October delivery jumped more than $2.

Comstock Resources, Inc.’s 9¾% senior notes due 2026 (Caa1/B/B) were active and making gains after S&P upgraded the oil and natural gas company.

J.C. Penney Co. Inc.’s longer duration junk bond pared some of their losses on Wednesday with the notes up about 2 points as the shorter duration bonds leveled after a sell-off last week.

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