Junk: NGL, Talos price; Rakuten joins calendar; Caesars, Freedom Mortgage, Merlin strong

By Paul A. Harris and Abigail W. Adams

Portland, Me., Jan. 25 – Two issuers raised $3.45 billion in a combined four tranches of junk on Thursday.

NGL Energy Partners LP made an upsized $2.2 billion two-part placement of senior secured notes (B2/B+/BB-): a $900 million tranche of five-year notes that priced at par to yield 8 1/8% and a $1.3 billion tranche of seven-year notes that priced at par to yield 8 3/8%.

Both tranches came tight to talk.

Talos Production Inc. priced an upsized $1.25 billion two-part placement of senior secured second-priority notes (B3/BB-/B+): $625 million of five-year notes that priced at par to yield 9% and $625 million of seven-year notes that priced at par to yield 9 3/8%.

Rakuten Group, Inc. began marketing a $1 billion offering of non-callable three-year senior notes. Initial guidance has the notes coming at a discount to yield in the 12% area, a trader said.

Meanwhile, it was a strong day in the secondary space on Thursday.

Caesars Entertainment, Inc.’s 6½% senior secured notes due 2032 (Ba3/B+) notched strong gains in heavy volume after a solid break.

Freedom Mortgage Holdings LLC’s 9¼% senior notes due 2029 (B2/B/B+) maintained the strong gains made on the break with the notes continuing to trade on a 101-handle.

Merlin Entertainments plc’s 7 3/8% senior secured notes due 2031 also continued to trade with a healthy premium.

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