US HY CLOSE-May gets off to solid start for high-yield

By Mike Gambale

NEW YORK, May 1 (IFR) - Here's a recap of primary issuance in the US high-yield market on Friday:

Number of deals priced so far: 3

Amount raised: US$1.95bn

Number of deals yet to price today: 1

PRICED:

EXTENDED STAY AMERICA INC (NYSE: STAY - news)

Extended Stay America Inc, expected ratings B3/BB-, US$500m 10-year nc5 senior note offering via DB(left)/CITI/GS (KSE: 078935.KS - news) /JPM/BARC/CS. Co-manager Lebenthal. 144a/RegS w/o reg rights. US$101 COC put. Equity clawback 35% during the first 3-years.

UOP: to repay a portion of amounts outstanding under a mortgage loan. BIZ: Extended Stay America (NYSE: STAY) is a extended-stay hotel brand owned by Extended Stay Hotels, comprising 632 properties across the United States that are all owned and operated by the company, which is headquartered in Charlotte, North Carolina.

WHISPER: Mid-to-high 5.00%

PRICE TALK: 5.375% area.

PRICED: US$500m. Cpn 5.25%. Due 5/1/2025 NC5. Ip par. Yld 5.25%. +318bp vs. 2.00% 2/15/2025 UST. First (Other OTC: FSTC - news) pay 11/1/2015. US$101 COC put. Equity clawback up to 35% until 5/1/2018 at 105.25%. MWC T+50bp. Call schedule: 2020 at 102.625%, 2021 at 101.75%, 2022 at 100.875%, 2023 and thereafter at par. Settlement date 5/15/2015. Cusip # 26907YAA2.

PRISIO ACQUISITION CORP

PriSio Acquisition Corp, Caa1/CCC+, announced a US$230m 8-year nc3 senior note offering via DB(left)/BMO/CS/GS/NOM. US$101 COC put. Equity clawback 40% during the first 3-years. 144a/Reg (Madrid: SL001.MC - news) w/o reg rights. First call par plus 1/2 coupon. UOP: Finance the LBO of PrimeSource by Platinum Equity. The financing will also include a $300 million ABL Revolver and a $325 million TLB. BIZ: Leading two step building products distributor.

WHISPER: Low 9.00%

PRICE TALK: 9% area

LAUNCH: US$200m (downsized from US$230m) 8-year nc3 notes at 9.00%. TLB now US$355m (upsized from US$325m). TLB pricing at L+350 / 1% Fl. / 99.5 OID.

PRICED: US$200m. Cpn 9.00%. Due 5/15/2023 NC3. Ip par. Yld 9.00%. +709bp vs. 1.75% 5/15/2023 UST. Equity clawback up to 40% until 5/15/18 at 109%. Call schedule: 2018 at 104.5%, 2019 at 102.25%, 2020 and thereafter at par. MWC T+50bp. US$101 CoC put. First pay 11/15/2015. Settlement date 5/8/2015. Cusip # 74273XAA0.

QUICKEN LOANS

Quicken Loans, rated Ba2/BBB-, announced a US$1.25bn 10-year nc5 senior note offering via CS(left)/JPM. Roadshows begin this week. UOP: To make a payment to parent Rock Holdings and for general corporate purposes. BIZ: Quicken Loans Inc., headquartered in Detroit, Michigan is, since 2012, the largest online retail mortgage lender and the second largest overall retail lender in the United States.

WHISPERS 6.00% area

PRICE TALK: 5.75 - 6.00%

PRICED: US$1.25bn. Cpn 5.75%. Due 5/1/25 NC5. Ip par. Yld 5.75%. +367bp vs. 2.00% 2/15/25 UST. Equity clawback up to 35% until 5/1/18 at 102.875%. MWC T+50bp. Call schedule: 5/1/20 at 102.875%, 5/1/21 at 101.917%, 5/1/22 at 100.958%, 5/1/23 and thereafter at par. First pay 11/1/15. Settlement date 5/6/15. Cusip # 74840LAA0.

EXPECTED TO PRICE TODAY:

ZAYO GROUP

Zayo Group, ratings tbd, announced a US$350m 10-year nc5 senior note offering via MS(left)/BARC/GS/CITI/RBC (Other OTC: RBCI - news) /STRH. Co-managers JPM. 144a/RegS w/reg rights. UOP: Repay existing borrowings under the Term Loan Facility. Any excess net proceeds will be used for general corporate purposes, which may include repayment of other indebtedness, acquisitions, working capital and capital expenditures. BIZ: Zayo Group is a publicly traded company headquartered in Boulder, Colorado, with European headquarters in London. The company provides fiber-based bandwidth infrastructure services and carrier-neutral colocation.

PRICE TALK: 6.375-6.500%

PIPELINE:

PETRA DIAMONDS (LSE: PDL.L - news)

Petra Diamonds US$ Treasury Plc, issue ratings B2/B+, announced a US$300m 5-year nc2 senior secured 2nd lien notes via RBC(left)/BARC. Roadshows began April 27, with pricing expected week of May 4. First call at par plus 50% coupon. US$101 COC put. Equity clawback up to 35% during the first 2-year at par plus the coupon. 144a/RegS for life.

UOP: To repay borrowings under existing Senior Secured Term Loans and Credit Facilities, and for general corporate purposes, including funding the new plant at the Cullinan mine. BIZ: Leading independent diamond mining group with a controlling interest in a diversified portfolio of five producing diamond mines.

Whisper: Mid 8.00% area

THE CHEMOURS COMPANY

The Chemours Company, rating tbd, announced a US$2.5bn 3-part US$/Euro senior note offering via CS(left)/JPM/BAML/BARC/CITI/GS. Structure will consist of a US$1.125bn 8-year nc3, E350m 8-year nc3, US$1bn 10-year nc5. Timing: European roadshow begins Friday (4/24), US roadshow began 4/29, pricing early week of May 4. Make whole calls apply T+50bp, DBR+50bp, and nothing for the 3-tranche. 144a/RegS w/reg rights. US$101 COC put.

Equity Clawback up to 35% within the first 3 years| None Special Call, If the spin-off is not completed on or before 11/30/15, .redemption at 100% until 8/15/15, redemption at 101% thereafter.

UOP: Partially fund a dividend to DuPont and GCP. BIZ: After the Separation from DuPont, Chemours will be an independent, publicly traded company and a global provider of performance chemicals through three reporting segments: Titanium Technologies, Fluoroproducts and Chemical Solutions. Chemours delivers customized solutions with a wide range of industrial and specialty chemical products for markets including plastics and coatings, refrigeration and air conditioning, general industrial, mining and oil refining.

WHISPERS: US$ 8yr nc3 6.50% area, Euro 8yr nc3 50-75bp inside US$, US$10-year nc5 6.75% area

QUINTILES TRANSNATIONAL HOLDINGS INC

Quintiles Transnational Holdings Inc, expected ratings Ba3/BB, announced a US$800m 8yr nc3 senior unsecured note offering via BARC(left)/JPM/MS/CITI/GS/WFS. Co-managers are BNP (Paris: FR0000131104 - news) /STRH. Roadshow (HKSE: 0888.HK - news) schedule: Monday 5/4 - New York, Tuesday 5/5 - Boston, pricing thereafter. 144a/RegS for life. US$101 COC put. Equity clawback 40% for the first 3-years at par plus coupon. UOP: , to refinance its existing credit facilities, as well as for general corporate purposes, including corporate transactions and equity repurchases. BIZ: provider of biopharmaceutical development and commercial outsourcing services.

WHISPERS: T+300-325bp

PBF LOGISTICS

PBF Logistics, ratings tbd, announced a US$300m 8-year nc3 senior note offering via DB(left)/CITI. Joint-bookrunners are BAML/MUFJ/RBC/WFS. Co-managers are BARC/BNP/CA (NasdaqGS: CA - news) /CS/MS/UBS (NYSEArca: FBGX - news) . Roadshows begin Monday (04May), with pricing scheduled for the end of next week. 144a/RegS w/reg rights. US$101 COC put. Equity clawback 35% during the first 3-years. UOP: Finance a portion of the Delaware City Logistics acquisition, refinance borrowings under Revolver and GCP. BIZ: Fee based MLP (Xetra: 656990 - news) developed to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets. (Reporting by Michael Gambale; editing by Shankar Ramakrishnan)