Uber oversubscribed; Nine Energy on tap; PHI in focus; Hexion ‘sloppy’; Albertson’s gains

By Paul A. Harris and Abigail W. Adams

Portland, Me., Oct. 15 – While the primary market saw no new paper price on Monday, there were inklings of new deal activity expected before the week’s end.

Nine Energy Service, Inc. started a roadshow for a $400 million offering of five-year senior notes (B3/B) with pricing expected Friday.

Uber Technologies Inc.’s $1.5 billion dual-tranche private placement was heard to be oversubscribed with pricing expected as early as Tuesday.

JBS SA was scheduled to begin marketing a dollar-denominated offering of senior notes (expected ratings BB-/BB-) on Monday.

United Rentals (North America) Inc. is also expected to launch a sizable senior notes offering (Ba3) in the coming week.

With no new paper pricing, the secondary space was “uneventful” on Monday, a market source said.

The market in general was down about ½ point week-over-week with spreads widening about 20 bps.

However, the market held in well amid the sell-off in equities last week, the source said.

PHI, Inc.’s 5¼% senior notes due March 15, 2019 were the focus of the secondary space on Monday with the notes rebounding from their lows after the company canceled its tender offer last Friday.

Hexion Inc.’s junk bonds were also sloppy in active trading on Monday, losing between 1 and 3 points, with the chemical sector under pressure.

While the market in general was down, Albertsons Cos., Inc.’s junk bonds were making gains in high-volume trading after reporting earnings.

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