Energy Transfer Equity, EP Energy drive-bys, downsized Blue Coat price, Transocean, oils slide

By Paul A. Harris and Paul Deckelman

New York, May 19 – A pair of sizable energy sector drive-by deals set the pace for the high-yield primary arena on Tuesday, syndicate sources said, as Energy Transfer Equity, LP and EP Energy Corp. got transactions done.

Energy Transfer, a midstream oil and natural gas company, brought a quickly shopped $1 billion offering of 12-year notes to market, pricing them at a discount to par, while exploration and production operator EP Energy did an opportunistically timed $800 million of eight-year notes via a pair of wholly-owned subsidiaries.

Earlier in the session, cyber-security provider Blue Coat Holdings, Inc. priced a downsized $470 million of eight-year paper in a regularly scheduled deal off the forward calendar. That was the only deal appearing early enough in the session for any real aftermarket activity, with the notes moving up slightly in active trading.

Away from the new deals, energy names such as California Resources Corp. and Energy XXI Ltd. retreated, in line with a slide in world crude oil prices.

Also in the energy area, Transocean Ltd.’s bonds were off, along with its shares, after the maritime driller issued its latest fleet status report, reporting contract extensions on some of its vessels – but at lower-than-anticipated prices.

Statistical market performance indicators were lower across the board for a second consecutive session on Tuesday. They had lost ground on Monday after having been higher all around on Friday and mixed on Wednesday and Thursday.

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