Eight high-yield issuers line up to print USD4.25bn

By Natalie Harrison

NEW YORK (Frankfurt: HX6.F - news) , March 26 (IFR) - The US high-yield market could price up to eight bonds Wednesday for USD4.25bn, including four drive-by deals, as issuers seize on the recent dearth of supply and a strengthening in equities.

Calumet Specialty Products, Warner Music, Kindred Healthcare, WideOpenWest (WOW) and EnQuest (LSE: ENQ.L - news) all announced new deals this morning as the primary market suddenly jumped back to life.

All but EnQuest are quick-print trades looking to price later in the day, joining previously announced offerings from Jefferies, Guitar Center and William Lyon Homes (NYSE: WLH - news) .

Hydrocarbon product company Calumet will use some of its USD850m deal, one of the biggest of the day, to finance the USD235m acquisition announced Wednesday of Anchor Drilling.

The remainder will refinance its 9.375% May 2019 notes, which are currently trading at a cash price of 110.5 to yield around 3.6%, according to Trace data.

Even though the company will pay a premium to refinance the bonds before their 104.688 call price on May 2015, Calumet is still likely to save substantial interest costs by issuing the new bonds at a lower coupon.

EnQuest, an independent UK oil producer in the North Sea, is embarking on a transatlantic roadshow and is not looking to price until next week.

Guitar Center will use proceeds from its almost USD1bn dual-tranche deal to refinance loans and bonds.

Meanwhile SunGard has already crossed the line this morning, pricing a USD425m eight-year non-call five senior note.

An unusual call structure which would more typically be a non-call three or four, the bond relates to the spin-off of the business from SunGard Data Systems.

The deal came in the middle of size guidance of USD400m to USD450m, but priced at the wide end of talk with an 8.75% coupon versus 8.5%-8.75% price talk via left-lead Deutsche Bank (Xetra: DBK.DE - news) .

The terms on the loan portion of the deal were sweetened earlier this week, according to Thomson Reuters LPC.

DEALS PRICED:

SUNGARD AVAILABILITY SERVICES CAPITAL

Expected ratings Caa1/B-, announced a USD400-450m 8yr nc5 senior notes via DB(left)/CITI/BAML. 144a for life w/o reg rights. USD101 COC put. UOP: The Company will not receive any proceeds from the sale of the notes in the offering. All of the proceeds will be received by the Selling Noteholders. BIZ: Leading provider of disaster recovery services, managed IT services, information availability consulting services, and business continuity management software.

PRICE TALK: 8.50-8.75%

PRICED: USD425m. Cpn 8.75%. Due 4/1/22. Ip par. Yld 8.75%. +622bp vs. 1.75% May 2022 UST. First (Other OTC: FSTC - news) pay 10/1/14. USD101 COC put. Call schedule: 2019 at USD104.375, 2020 at USD102.188, 2021 at par. Settlement date 3/31/14. Cusip # 86737NAA6.

DEALS PIPELINE:

KINDRED HEALTHCARE INC (NYSE: KND - news)

Existing ratings B3/B-, announced a USD500m 8yr nc3 senior notes via JPM(left)/CITI/BARC/MS/WFS. Investor (Other OTC: IVSBF - news) call at 11:30am with pricing expected later today. 144a/RegS w/reg rights. First call at par plus 75% coupon. UOP: to redeem and repurchase its outstanding $550 million of existing 8.25% senior notes due 2019 and to pay any related fees and expenses. BIZ: Kindred Healthcare, Inc., a top-150 private employer in the United States, is a FORTUNE 500 healthcare services company based in Louisville, Kentucky with annual revenues of approximately $5 billion and approximately 63,000 employees in 47 states.

CALUMET SPECIALTY PRODUCTS PARTNERS

Existing ratings B2/B+, announced a USD850m 7yr nc3 senior unsecured note offering via BAML(left)/BARC/RBC (MCX: RBCM.ME - news) /JPM. Co-managers WFS/DB/GS (KSE: 078935.KS - news) . Pricing expected later today. 144a/RegS w/reg rights. First call par plus 50% of coupon. USD101 COC put. Special redemption: Offer to repurchase $235 million of Notes at par, plus accrued and unpaid interest if the Anchor acquisition is not closed or terminated by June 30, 2014. UOP: to fund the approximately $235 million purchase price of its previously announced pending acquisition of ADF Holdings, Inc., the parent company of Anchor Drilling Fluids USA, Inc., and related expenses (the "Anchor Acquisition") and the redemption of all $500 million aggregate principal amount of its outstanding 9 3/8% senior unsecured notes due 2019 (the "2019 Notes"). Any remaining funds will be used for general partnership purposes, including planned capital expenditures at its facilities. BIZ: Calumet Specialty Products Partners is a leading refiner and processor of specialty hydrocarbon products.

WMG ACQUISITION CORP

USD935m 2-tranche deal via CS(left)/BARC/UBS (Xetra: UB0BL6 - news) /MACQ/NOMURA. 144a/RegS for life. Investor call at 11am today, with pricing expected later this afternoon. USD101 CoC put. UOP: Refinance existing senior unsecured notes. BIZ: 3rd largest major music content company in the world. Structure is as follows:

- USD275m 8yr nc3 senior secured notes. NC3 then par plus 3/4 coupon. Special call of 10% at USD103 during non-call period applies. Equity clawback up to 40% during NC.

- USD660m 8yr nc3 senior notes. NC3 then par plus 3/4 coupon. Equity clawback up to 40% during non-call period.

WIDEOPENWEST FINANCE

Existing ratings Caa1/CCC+, announced a USD100m tack-on to it's 10.25% July 15, 2018 senior notes via CS(left)/JPM. Investor call is at 10am with pricing expected later this afternoon. The notes will be fungible upon registration. 144a/RegS w/reg rights. Call protection until 7/15/15, then at USD107.688. Equity clawback up to 40% until 7/15/15. USD 101 COC put. UOP: Repay existing revolver and GCP. BIZ: Leading fully-integrated provider of high-speed data, video and telephony services.

- The original USD725m deal was sold on July 12, 2012 at T+928bp.

PRICE TALK: 112½-113. Books close at 12:30

JEFFERIES FINANCE

Ratings tbd, announced a USD350m 8NC3 self-led senior note offering. The deal will be 144a only. Pricing expected Wednesday (26Mar). First call price par plus 75% coupon. UOP: GCP. BIZ: Leading commercial finance company that structures, underwrites, and syndicates primarily senior secured loans to corporate borrowers with over 320 lead arranged transactions completed for $49 billion since 2004.

PRICE TALK: 6.875 - 7.00%. Books closed at 11am today, with pricing expected shortly thereafter.

WILLIAM LYON HOMES

Ratings tbd, USD150m 5NC2 senior notes. 144A/Reg S with reg rights. Equity c/back up to 35% with the first 2 years. CoC at 101. UOP: Fund the acquisition of a portfolio of California residential land assets. Pricing March 26. CS/Citi/JPM. Biz: Leading public homebuilder.

GUITAR CENTER, INC

Rated B3/Caa2, announced a USD940m 2-tranche deal via BAML(left)/DB/JPM/RBC. 144a for life. USD101 COC put. Roadshows begin (25Mar) along with investor call, with pricing expected mid-week. UOP: Proceeds will be used to repay all outstanding obligations under the Company's Term Loan Facility and to redeem a portion of the their Senior Notes due 2017. BIZ: Guitar Center is the leading retailer of music products in the United States. Structure is as follows:

- USD615m 5-year nc2 senior secured notes rated B3

- USD325m 6-year nc3 senior notes rated Caa2

JONES ENERGY HOLDINGS

Jones Energy Holdings, LLC expected ratings low single-B, announced a USD300m 8yr nc3 senior unsecured note offering via CITI(left)/WFS/BARC/CAPONE/CA/JPM/STRH/TDS/MUFJ. Sr Co-mgrs Jefferies, Morgan Stanley (Berlin: DWD.BE - news) , Tudor Pickering Holt. Co-Managers: Comerica (Frankfurt: CA3.F - news) , Stifel. Roadshows began (24Mar) in New York, Tuesday (25Mar) NYC/NJ, Wednesday (26Mar) Boston, Thursday/Friday West Coast. NYC lunch 12pm. Pricing expected this Friday (28Mar). 144a/RegS w/reg rights applies. USD101 COC put. Equity clawback up to 35% at par plus coupon within the first 3-years applies. UOP: to repay all outstanding borrowings under the company`s existing second lien term loan facility and pay down borrowings under its senior secured revolving credit facility. BIZ: Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma.

LONESTAR RESOURCES AMERICA, INC

Ratings Caa2/CCC+, announced a USD200m 5yr nc2 senior note offering via JEFF(left)/WFS. Co-manager GMP. 144a/RegS for life. Roadshows 25Mar through mid next-week. There is a New York Group lunch on Wednesday (26Mar). First call price par plus 75% coupon. UOP: To refinance existing debt. BIZ: Independent oil (LSE: IOG.L - news) and natural gas production and development company operating in the Eagle Ford Shale in Texas.

ENQUEST

The largest independent UK oil producer in the North Sea, on Wednesday announced its intention to print USD500m of 8NC3 high yield notes via JP Morgan (Other OTC: JPYYL - news) , Barclays (LSE: BARC.L - news) , BNP Paribas (Milan: BNP.MI - news) , Bank of America Merrill Lynch, Credit Suisse (NYSE: CS - news) , Goldman Sachs (NYSE: GS-PB - news) and Scotia. A roadshow is due to start in London on Thursday and in the US on Monday ahead of pricing expected on Friday April 4.

(Reporting by Natalie Harrison; Editing by Marc Carnegie)