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Published on 1/27/2011 in the Prospect News High Yield Daily.

High Yield Calendar: $3.41 billion, £350 million and C$200 million deals being marketed

JANUARY 24 WEEK

NATIONAL MENTOR HOLDINGS, INC.: $275 million seven-year senior notes (Caa2/CCC+); UBS Investment Bank (left lead), Barclays Capital Inc., Jefferies & Co. (joint books); Rule 144A/Regulation S; non-callable for three years; proceeds, together with borrowings under the new credit facility, to repay all amounts owing under the existing credit facility and pay a consideration of the tender offers and consent solicitations; Boston-based provider of home and community-based human services; price talk 12½% area yield; books close 11 a.m. ET Friday.

OASIS PETROLEUM INC.: $300 million senior notes due 2019 (Caa1/B-); J.P. Morgan Securities LLC, Wells Fargo Securities, BNP Paribas, UBS Investment Bank; Rule 144A/Regulation S; non-callable for four years; to fund its exploration, development and acquisition program and for general corporate purposes; Houston-based independent oil and gas exploration and production company; price talk 7% to 7¼%; pricing expected Friday morning.

BAKKAVOR GROUP HF/BAKKAVOR FINANCE: £350 million senior secured notes due 2018 (B2/B); Barclays Capital, the Royal Bank of Scotland (physical books), Bank of America Merrill Lynch, HSBC (passive books), BNP Paribas, Mizuho, Rabobank (co's); Rule 144A/Regulation S; non-callable for four years; to refinance debt; Reykjavik, Iceland-based food manufacturer; price talk 8¼% area; pricing Friday.

MAXUM PETROLEUM OPERATING CO.: $250 million senior notes due 2019 (B3); Credit Suisse, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Goldman Sachs & Co., Citigroup Global Markets Inc. (joint) Rule 144A/Regulation S with registration rights; non-callable for four years; Three-year 35% equity clawback; 101% poison put; to repay revolver and for general corporate purposes; Greenwich, Conn.-based marketer and logistics company for petroleum products; possibly pricing Friday.

EXCEL MARITIME CARRIERS LTD.: $250 million senior notes due 2019 (Caa1/B-/); Deutsche Bank Securities, Citigroup; Rule 144A/Regulation S; non-callable for four years; to repay about $240 million of revolver and for general corporate purposes; Athens, Greece-based seaborne cargo transportation services provider; price talk 9½%.

AKER DRILLING ASA: NOK 1.5 billion senior bonds due February 2016; DnB NOR Markets, Nordea Markets, Pareto Securities, SEB Merchant Banking (arrangers); to call the outstanding bonds at 104.50, repay existing subordinated loans to Aker ASA and for general corporate purposes; Stavanger, Norway-based drilling rig operator.

JANUARY 31 WEEK

WESTMORELAND COAL CO.: $150 million senior secured notes due 2018 (Caa2/CCC); Gleacher & Co.; Rule 144A with registration rights/Regulation S; non-callable for three years; 35% equity clawback; 101% poison put; proceeds expected to be used to pay all accrued and unpaid dividends on the company's series A preferred stock, to repay certain debt, to retire approximately $2.7 million of the outstanding principal owed on the senior secured convertible notes (with the remaining principal balance to be converted to common stock at closing) and for general corporate purposes; Colorado Springs-based coal producer; roadshow started Jan. 24.

SM ENERGY CO.: $250 million senior notes due 2019 (/BB/); Bank of America Merrill Lynch, Wells Fargo Securities (joint), Bank One South Coast, Capital One Southcoast, KeyBanc Capital Markets, Lloyds TSB, RBC Capital Markets, US Bancorp; Rule 144A with registration rights; non-callable for four years; 101% poison put; to repay bank debt, fund capital expenditures and for general corporate purposes; SM Energy, formerly named St. Mary Land & Exploration Co., is a Denver-based independent energy company; pricing early in Jan. 31 week.

BLUE MERGER SUB INC. to be merged with and into DEL MONTE FOODS CO.: $1.5 billion senior notes due 2019 (B3/B-); Bank of America Merrill Lynch (bill and deliver, joint physical books), Morgan Stanley (joint physical books), Barclays Capital Inc., J.P. Morgan Securities LLC (joint books), KKR Capital Markets (lead manager), Deutsche Bank Securities, Goldman Sachs & Co., Mizuho (co's); Rule 144A with registration rights; non-callable for three years; 101% poison put; to fund LBO by Kohlberg Kravis Roberts & Co. LP, Vestar Capital Partners and Centerview Partners; San Francisco-based branded pet and consumer products company; roadshow started Jan. 27; pricing expected Feb. 1.

MEDIMPACT HOLDINGS, INC.: $225 million seven-year senior secured notes (Caa2); Credit Suisse Securities, Bank of America Merrill Lynch, Jefferies & Co. (joint); Rule 144A for life; non-callable for four years; to repay third-party claims and revolver debt, for general corporate purposes and to fund a dividend; San Diego-based pharmacy benefits management company; roadshow started Jan. 26; pricing Jan. 31 week.

AXCAN INTERMEDIATE HOLDINGS INC.: $225 million senior secured notes due 2018 (/BB/); Bank of America Merrill Lynch, Barclays Capital, RBC Capital Markets, HSBC (joint); Rule 144A with registration rights; non-callable for three years, 10% of issue callable annually at 103 during non-call period; 101% poison put; proceeds, together with cash on hand, proceeds from an equity contribution and a term loan, to finance the acquisition of Eurand NV and pay off certain debt of Axcan and Eurand; pricing late Jan. 31 week; Axcan is a Mont-Saint-Hilaire, Quebec-based pharmaceutical company; roadshow started Jan. 25; pricing late Jan. 31 week.

VERMILION ENERGY INC.: C$200 million senior notes due Feb. 11, 2016; Scotia Capital, CIBC World Markets (lead bookrunners), TD Securities (joint lead), BMO Nesbitt Burns, RBC Capital Markets, National Bank Financial, Macquarie Capital, FirstEnergy Capital, Citigroup, Dundee Securities, BNP Paribas (co's); for non-permanent repayment of existing debt and/or general corporate purposes; Calgary, Alta.-based international oil and gas producer; roadshow Jan. 31-Feb. 3.

EXPECTED EARLY 2011 BUSINESS

ASHLAND DISTRIBUTION: $600 million high-yield bonds and bank debt; Bank of America Merrill Lynch; to fund LBO by TPG Capital, expected to close by end of March 2011; also $400 million equity.

GALA CORAL GROUP, LTD.: Up to £600 million senior notes with minimum seven-year tenor; Goldman Sachs & Co. and the Royal Bank of Scotland expected to be involved; to repay senior secured bank loans; Nottingham, England-based gaming and off-track betting company; expected early 2011 business.

SI ORGANIZATION INC.: $175 million senior subordinated notes; J.P. Morgan Securities LLC; to help fund $815 million to help fund Veritas Capital's acquisition of Lockheed Martin Corp.'s Enterprise Integration Group; Valley Forge, Pa.-based provider of engineering, integration services, modeling, simulation, analysis and risk mitigation services to the U.S. intelligence community; possible early 2011 business.

VIKING RIVER CRUISES: Expected $200 million high-yield notes; Credit Suisse; Los Angeles-based river cruise line; possible January business.

ON THE HORIZON

ACE CASH EXPRESS, INC.: $350 million debt financing, proceeds, together with available cash, to fund the tender offer for 10¼% notes due 2014, to repay certain other debt, with any remaining proceeds for general corporate purposes; financial services provider focused on serving unbanked and underbanked consumers.

AMERICAN TOWER CORP.: Expected issue of high-yield notes, as part of a refinancing of bank debt maturing in 2012; Boston-based wireless and broadcast communications infrastructure company.

CANADIAN SATELLITE RADIO HOLDINGS INC.: (parent company of XM CANADA): about C$130 million of senior notes; to help fund the all-stock merger of equals of XM Canada with Sirius Canada Inc., with a combined enterprise value of about $520 million, transaction subject to approval by CSR's shareholders (other than Sirius XM and its affiliates) at a special meeting anticipated to be held in February 2011.

CPI INTERNATIONAL INC.: $215 million notes and $178 million credit facility; UBS Investment Bank; to fund LBO of the company by Veritas Capital; Palo Alto, Calif.-based provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications.

ENERGY PARTNERS, LTD.: New senior notes; to help fund the acquisition of oil and natural gas assets in the shallow-water central Gulf of Mexico shelf from Anglo-Suisse Offshore Partners, LLC for $201.5 million; independent oil and natural gas exploration and production company based in New Orleans and Houston.

HUNTINGTON INGALLS INDUSTRIES, INC.: $1.175 billion senior unsecured notes due in 2018, non-callable for three years, and due 2021, non-callable for five years (/B+/BB); to help fund the spin-off of Huntington Ingalls from Northrop Grumman Corp., and repay debt; Newport News shipbuilding company.

IGATE CORP.: Up to $700 million senior unsecured notes via Rule 144A or other private placement; backed by $700 million bridge loan from Jefferies Finance LLC and Royal Bank of Canada; to help fund the acquisition of a majority stake in Patni Computer Systems Ltd., a Mumbai, India-based information technology services company, expected to close during the first half of 2011; debt financing also includes $50 million revolver; iGate is a Freemont, Calif.-based integrated technology and operations solutions provider.

J. CREW GROUP INC.: $600 million senior notes; Goldman Sachs & Co., Bank of America Merrill Lynch (joint); proceeds, along with $1 billion term loan and $250 million ABL revolver, to fund the approximately $3 billion LBO of the company by TPG Capital and Leonard Green & Partners LP; also $1.1 billion of equity financing; New York-based retailer of clothing and accessories; expected early 2011 business.

KRATON POLYMERS: $200 million eight-year senior notes; also $350 million credit facility via Bank of America Merrill Lynch, Morgan Stanley, Goldman Sachs & Co., Credit Suisse, Macquarie; proceeds to fund a comprehensive refinancing of Houston-based chemical company's capital structure in February 2011.

LODGENET INTERACTIVE CORP.: Possible debt financing that could include bonds; to repay bank debt; Sioux Falls, S.D.-based provider of interactive media and connectivity solutions to the hospitality industry and interactive patient education, information and entertainment systems to health care facilities; ($435 million six-year senior secured second-lien notes, B3/B/, via Bank of America Merrill Lynch, J.P. Morgan Securities LLC, put on hold Sept. 28 as company announced it is seeking alternatives).

ROADSHOWS

Started Jan. 24 week: NATIONAL MENTOR HOLDINGS, INC. $275 million; UBS Investment Bank, Barclays Capital Inc., Jefferies & Co.

Started Jan. 24: WESTMORELAND COAL CO. $150 million; Gleacher & Co.

Started Jan. 25: AXCAN INTERMEDIATE HOLDINGS INC. $225 million; Bank of America Merrill Lynch, Barclays Capital Inc., RBC Capital Markets, HSBC.

Started Jan. 26: MEDIMPACT HOLDINGS, INC. $225 million; Credit Suisse, Bank of America Merrill Lynch, Jefferies & Co.

Started Jan. 26: BLUE MERGER SUB INC. to be merged with and into DEL MONTE FOODS CO. $1.5 billion; Bank of America Merrill Lynch, Morgan Stanley & Co. Inc., Barclays Capital Inc., J.P. Morgan Securities LLC.

Pricing early Jan. 31 week: SM ENERGY CO. $250 million; Bank of America Merrill Lynch, Wells Fargo Securities.

Jan. 31-Feb. 3: VERMILION ENERGY INC. C$200 million; Scotia Capital, CIBC World Markets.


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