Upsized Halcon, Lennar drive-by deals price, move up; existing Halcon paper off on new deal

By Paul A. Harris and Paul Deckelman

New York, April 21 – Halcon Resources Corp. was the dominant name in Junkbondland on Tuesday in both the primary and the secondary realms.

The Houston-based oil and natural gas exploration and production company priced a quick-to-market, upsized $700 million five-year secured bond deal.

Traders said the new bonds firmed smartly when they were freed for secondary dealings.

The same could not be said for the company’s existing unsecured bonds, which fell badly in heavy trading at the prospect of being shoved further down the capital structure by the new bonds.

The primary market also saw an upsized $500 million 10-year issue from homebuilder Lennar Corp.

Those notes firmed in active aftermarket dealings.

Apart from Halcon and Lennar, the primary saw a pair of dollar-denominated deals hitting the road: $400 million of eight-year notes from health-care name 21st Century Oncology, Inc. and a $3.5 billion, three-part offering from German auto-parts manufacturer ZF Friedrichshafen AG, which priced a two-tranche, €2.25 billion offering on Monday.

Monday’s 10-year note deal from apparel manufacturer Levi Strauss & Co. was heard to have moved higher Tuesday in busy trading.

Statistical indicators of junk market performance were higher for a second straight session on Tuesday; they had moved up on Monday after having turned mixed last Thursday and lower across the board on Friday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.