OneMain two-part prices, await Westmoreland terms, JBS postpones deal; oil names battered again

By Paul Deckelman and Paul A. Harris

New York, Dec. 8 – The high-yield primary market opened the new week on Monday with an upsized $1.5 billion pricing from OneMain Financial Holdings, Inc. Traders did not report any initial aftermarket dealing in the consumer lending company’s two-part offering of five-year and seven-year notes.

Another deal heard to have gotten done was Westmoreland Coal Co.’s $400 million offering of secured notes, although terms were expected to be announced on Tuesday.

Traders saw a modest amount of activity in the new Constellium NV eight-year issue, which priced on Friday.

But they said the market’s real focus remained the beleaguered energy sector – and most of those bonds were on the slide on Monday, some by multiple points, as world crude oil prices tumbled to five-year lows.

Among the credits getting clobbered were such familiar oil and natural gas exploration and production names as California Resources Corp., Halcon Resources Corp. and Linn Energy LLC, along with coal producer Cliffs Natural Resources Inc.

There was also some modest upside activity in the bonds of Kodiak Oil & Gas Corp. and Whiting Petroleum Corp., as Whiting officially completed its previously announced acquisition of E&P sector peer Kodiak, triggering a change-of-control offer for the latter’s outstanding notes.

Statistical market-performance measures were seen lower across the board for a second consecutive session on Monday. They had also eased all around on Friday, after having been mixed on Thursday.

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