High Yield Calendar: $2.465 billion and C$275 million deals being marketed

FEBRUARY 28 WEEK

HUNTINGTON INGALLS INDUSTRIES, INC.: $1.175 billion senior unsecured notes (Ba3/B+/BB) due in 2021, non-callable for five years, price talk 7% to 7¼%, and due 2018, non-callable for four years, price talk 25 bps inside 10-year notes (tranche sizes expected to be about equal); Credit Suisse Securities, J.P. Morgan Securities LLC, RBS Securities Inc., Wells Fargo Securities (joint); Rule 144A with registration rights; both tranches feature three-year 35% equity clawbacks and 101% poison puts; to capitalize the company, to fund a cash transfer to Northrop Grumman and for general corporate purposes (proceeds will be funded into escrow prior to effective date of the spinoff of Northrop Grumman's shipbuilding business); Newport News, Va., shipbuilding company; books close 11 a.m. ET Friday, pricing thereafter.

JMC STEEL GROUP, INC.: $725 million senior notes due 2018 (B3/B/); J.P. Morgan Securities LLC (books), Wells Fargo Securities (co); Rule 144A for life; non-callable for three years; to help refinance the Zekelman Family's acquisition of a controlling stake in the company from the Carlyle Group; Beachwood, Ohio-based manufacturer of steel pipe and tubes; price talk 8½% area; books close at 5 p.m. ET Thursday; pricing Friday mid-morning.

MARCH 7 WEEK

HEADWATERS INC.: $400 million senior secured notes due 2019 (existing ratings B2/B+); Deutsche Bank Securities Inc.; Rule 144A and Regulation S; non-callable for four years; to fund the tender for any and all of its $328.3 million 11 3/8% senior secured notes due 2014; South Jordan, Utah-based provider of products and services to the energy, construction and home-improvement industries; roadshow starts March 3; pricing early March 7 week.

PERPETUAL ENERGY INC.: C$150 million seven-year senior notes (/B-/); BMO Capital Markets Corp. (lead); CIBC World Markets Inc., Scotia Capital Inc., TD Securities Inc., National Bank Financial Inc. and Peters & Co. Ltd. (co-managers); proceeds to repay existing debt; Calgary, Alta.-based oil and gas company, roadshow starts Wednesday in Vancouver, B.C., and continues in Toronto Thursday and Friday and in New York City on March 8.

SKYLINK AVIATION INC.: C$125 million five-year notes (B/DBRS: B); RBC Capital Markets Corp. (lead); Toronto-based global charter company; roadshow through March 7.

HOOTERS RESTAURANTS via HOA Restaurant Group, LLC and HOA Finance Corp.: $165 million senior secured notes due 2017 (expected ratings B3/B); Jefferies & Co. (sole); Rule 144A and Regulation S for life; non-callable for three years; to repay existing term loan and redeem sponsor mezzanine debt; Atlanta-based owner, operator and franchisor of casual dining restaurants; roadshow March 4-11.

EXPECTED EARLY 2011 BUSINESS

DELUXE CORP.: $200 million minimum of new senior notes via Rule 144A; to fund tender offer for 5% senior notes due 2012, via dealer managers J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC, early consent deadline March 7; St. Paul, Minn.-based provider of printed checks and deposit slips for financial institutions and printed products for small businesses.

CLAYTON WILLIAMS ENERGY, INC.: New senior notes; to fund tender for 7¾% senior notes due 2013, via dealer manager RBS Securities Inc., early participation date March 15, 2011; Midland, Texas-based independent energy company.

EMERGENCY MEDICAL SERVICES CORP.: $950 million senior notes; also $1.725 billion credit facility expected to launch March 7 week; debt financing to be led by Barclays Capital Inc., Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Morgan Stanley & Co. Inc., RBC Capital Markets, UBS Investment Bank; proceeds, along with equity, to fund buyout of the company by Clayton, Dubilier & Rice LLC; Greenwood Village, Colo.-based provider of health care transportation services and outsourced physician services to health care facilities; expected to launch mid-March 2011.

GALA CORAL GROUP, LTD.: Up to £600 million senior notes with minimum seven-year tenor; Goldman Sachs & Co. and 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.

GROHE HOLDING GMBH: €400 million senior secured notes; Credit Suisse, Morgan Stanley, Deutsche Bank; to fund concurrent tender offer for its senior secured floating-rate notes due 2014, expires March 7, 2011; Germany-based plumbing fixtures manufacturer.

PREMIER FOODS PLC (Ba2/BB/BB): New high-yield bonds; to settle swap agreements, diversify sources of funding and reduce reliance on bank debt; St. Albans, England-based food producer; possibly launching during Feb. 21 week.

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.

CANADIAN SATELLITE RADIO HOLDINGS INC.: (parent company of XM CANADA): about C$150 million of 9¾% senior notes due 2018; National Bank Financial Inc., Canaccord Genuity Corp. (joint); 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; expected to price in March 2011.

ON THE HORIZON

ALPHA NATURAL RESOURCES INC.: Up to $1.7 billion senior notes, also $1.6 billion credit facility; Citigroup and Morgan Stanley are leading the credit facility and the bridge financing; proceeds, along with cash on hand, to fund the acquisition of Massey Energy Co., expected to close mid-2011, refinance $1.4 billion of Massey debt and refinance existing debt at Alpha, including its term loan A; Abingdon, Va.-based Alpha Natural Resources and Richmond, Va.-based Massey are coal companies.

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.

HECKLER & KOCH GMBH: Expected €100 million notes with five-year to seven-year maturity; Close Brothers Seydler Bank; proceeds, along with liquidity from other assets, to refinance the existing €120 million 9¼% notes due July 15, 2011; Oberndorf, Germany-based small-arms maker; proceeds, along with liquidity from other assets, to refinance its existing €120 million 9¼% notes due July 15, 2011; expected to be completed by the end of the second quarter of 2011.

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.

KINDRED HEALTHCARE INC.: $550 million senior notes; part of debt financing for planned acquisition of RehabCare Group, Inc., expected to close June 30, 2011; also includes $1.3 billion credit facility; J.P. Morgan Securities LLC, Morgan Stanley, Citigroup are lead banks for financing; Kindred Healthcare is a Louisville, Ky.-based health-care services company.

KRATOS DEFENSE & SECURITY SOLUTIONS, INC.: Up to $325 million in total principal amount of senior secured notes due 2017; Jefferies & Co. plus others; to partially fund the acquisition of Herley Industries, Inc. for $19.00 per share in cash (tender for shares to begin no later than Feb. 25, 2011 and is subject to extension through June 30, 2011); Kratos is a San Diego-based provider of engineering, IT services and warfighter services.

KRUGER INC.: Up to C$210 million PIK toggle notes (upsized from C$200 million); GMP Securities; project finance; Montreal-based paper products manufacturer.

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).

NAL OIL & GAS: C$150 million to C$250 million notes; RBC Capital Markets, BMO Nesbitt Burns; Calgary, Alta., trust acquires interests in Canada's upstream conventional oil and gas industry.

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

ROADSHOWS

Feb. 28 week: HUNTINGTON INGALLS INDUSTRIES, INC. $1.175 billion; Credit Suisse Securities, J.P. Morgan Securities LLC, RBS Securities Inc., Wells Fargo Securities.

Starts March 3: HEADWATERS INC. $400 million; Deutsche Bank Securities Inc.

Through March 7: SKYLINK AVIATION INC. C$125 million; RBC Capital Markets Corp.

March 4-11: HOOTERS RESTAURANTS: $165 million; Jefferies & Co.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.