Valeant, Continental Resources megadeals lead $3.5 billion session; energy surges

By Paul Deckelman and Paul A. Harris

New York, Dec. 4 – The traditional year-end rush to get deals done, which began with last week’s amazing $13 billion-plus of new dollar-denominated and junk-rated paper from domestic or industrialized country borrowers having priced, resumed unabated on Monday, with another $3.51 billion of such notes clattering down the chute in four tranches, all of them opportunistically timed and quickly shopped drive-by transactions.

High-yield syndicate sources said that Canadian drugmaker Valeant Pharmaceuticals International Inc. had the big deal of the day – an upsized $1.5 billion issue of eight-year notes, which priced at a discount to par.

Oil and natural gas exploration and production company Continental Resources, Inc. brought an upsized $1 billion of 10-year notes to market.

Out of that same sector, midstream master limited partnership Genesis Energy, LP did a $450 million 8.5-year deal.

And power generating company Calpine Corp. rounded out the day’s action with an upsized $560 million add-on to its existing June 2026 secured notes.

Besides the deals that actually priced, the sources reported a slew of other prospective dollar-denominated issues from the likes of Quicken Loans Inc., Vantiv, LLC, Jeld-Wen, Inc., Cleveland-Cliffs Inc. and Cooke Omega Investments Inc.

Away from the new deals, energy E&P credits such as California Resources Corp., Denbury Resources Inc. and EP Energy Corp. were seen having firmed smartly, despite a slide in crude oil prices following two straight upside sessions.

© 2015 Prospect News.
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