GEP Haynesville postpones; HC2 widens talk; McDermott tanks; Bed Bath & Beyond active

By Abigail W. Adams

Portland, Me., Oct. 31 – Volatile market conditions continued to take a toll on new issue activity in the domestic high-yield primary market with the forward calendar whittling down to one.

GEP Haynesville LLC postponed its $600 million offering of five-year senior notes (B3/B) on Wednesday after failing to garner enough interest at widened price talk, according to a market source.

HC2 Holdings, Inc. remains in the market with its $535 million offering of senior secured notes. However, price talk “blew out,” with the timing of the deal still pending, sources said.

High-yield players were eyeing Dubai Aerospace Enterprise Funding LLC’s $1.25 billion two-tranche offering, which is expected to price on Thursday. The issuer is a strong credit and the deal is expected to receive a positive reception despite the volatility in the market, a source said.

Meanwhile, the secondary space was seen as slightly improved on Wednesday with equity markets rallying even as crude oil futures closed out their worst month in recent history.

All eyes were on McDermott International Inc.’s 10 5/8% senior notes due 2024 (B2/B-) as they plunged 10 points after the company released third-quarter earnings and announced a divestiture from its storage tank and pipe fabrication businesses.

Bed Bath & Beyond Inc.’s bonds remained active in secondary trading with the notes continuing to see slight gains. The notes have been actively traded since S&P downgraded them to junk last week.

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