RegionalCare hikes talk; HC2 downsizes; McDermott ‘destroyed’; energy under pressure

By Paul A. Harris and Abigail W. Adams

Portland, Me., Nov. 13 – The domestic primary market was quiet on Tuesday as volatility continued to take its toll on capital markets.

RegionalCare Hospital Partners Holdings, Inc. and LifePoint Health, Inc. increased price talk and made covenant changes to its $1,575,000,000 offering of eight-year senior notes (Caa1/CCC+), which is expected to price on Wednesday.

HC2 Holdings, Inc. downsized its $535 million offering of senior notes, shifting some proceeds to a concurrent convertible notes offering with the deal now expected on Wednesday.

While the pipeline is thin, some potential issuers are testing the waters.

Atlantica Yield plc is pre-marketing a $300 million offering of senior notes due 2026.

In the European primary market, two issuers are on the road.

Meanwhile, the secondary space remained sloppy in the return from the Veterans Day holiday. The market opened lower by 1 point although it stabilized into the afternoon.

The energy sector remained under pressure as crude oil futures plummeted more than $4 on Tuesday.

PHI Inc.’s already struggling 5¼% senior notes due March 15, 2019 shaved off more than 2½ points in active trading with the maturity of the notes fast approaching and no refinancing deal in sight.

McDermott International Inc.’s 10 5/8% senior notes due 2024 (B2/B-) continued their downward spiral on Tuesday with the notes again dropping 4 points, marking a 19-point decline since reporting earnings.

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