Gaming and Industrial Sectors Drive Bond Sales
PH Casino Resorts Inc., a unit created by Colony Capital's Harveys Casino Resorts, is planning to sell $625 million of high yield bonds through Deutsche Bank. The funds from this sale will be used to repay debt. PH Casino is also planning to sell $900 million in loans, to be lead managed by CIBC World Markets Inc. Harveys, owner of Harveys Casino in Lake Tahoe, Nev., agreed to buy Pinnacle Entertainment Inc. for $1.28 billion in cash and assumed debt.
Meanwhile, Cleveland-based Lincoln Electric Corp., a maker of welding machines and equipment, plans to sell $200 million in junk bonds to help fund its acquisition of U.K. welding-equipment maker Charter Plc for roughly $743 million in cash.
Additionally, Radiologix Inc. is planning a sale of roughly $250 million of eight-year senior notes and UBS Warburg is expected to arrange the transaction. The funds from this sale will most likely be used to pay down some of the company's existing debt under a proposed recap of the firm. TravelCenters of America Inc., plans to sell $200 million of 10-year senior subordinated notes, and it is also arranging $408 million of loans to help fund a buyout of the firm by Oak Hill Partners LP.
Hercules Inc., a specialty chemicals company, said it plans to sell $375 million of notes to repay bank debt. The sale will probably comprise seven-year senior unsecured debt. The company also plans to issue $375 million of new five-year bank term debt. Seagate Technology Inc. is preparing a road show to sell high yield bonds, with the company's management, Chase Capital Partners, and Goldman Sachs arranging $1.3 billion of high yield financing for the company.
Key Takeaways:
- PH Casino Resorts Inc. plans to sell $625 million of high yield bonds to repay existing debt, while also preparing to sell $900 million in loans to recapitalize the firm.
- Lincoln Electric Corp. is planning to sell $200 million in junk bonds to help fund its acquisition of U.K. welding-equipment maker Charter Plc for $743 million.
- Radiologix Inc. plans to sell approximately $250 million of eight-year senior notes to pay down existing debt under a proposed recap.
- TravelCenters of America Inc. is planning to sell $200 million of 10-year senior subordinated notes and $408 million of loans to help fund a buyout by Oak Hill Partners LP.
- Hercules Inc. plans to sell $375 million of notes and $375 million of new bank term debt to repay bank debt and recapitalize the company.
- Seagate Technology Inc. is planning to sell high yield bonds to replace a $400 million bridge loan, with Chase and Goldman earlier committing to arrange $1.3 billion of high yield financing for the company.
Statistics:
- $625 million: amount of high yield bonds PH Casino Resorts Inc. plans to sell.
- $900 million: amount of loans PH Casino Resorts Inc. plans to sell.
- $743 million: price of Charter Plc acquisition by Lincoln Electric Corp.
- $200 million: amount of junk bonds Lincoln Electric Corp. plans to sell.
- $250 million: amount of senior notes Radiologix Inc. plans to sell.
- $408 million: amount of loans TravelCenters of America Inc. plans to sell.
- $375 million: amount of notes Hercules Inc. plans to sell.
- $375 million: amount of new bank term debt Hercules Inc. plans to issue.
- $400 million: amount of bridge loan being replaced by high yield bonds from Seagate Technology Inc.
- $1.3 billion: total high yield financing arranged by Chase and Goldman for Seagate Technology Inc.
Sources:
- Colony Capital's Harveys Casino Resorts (no date)
- CIBC World Markets Inc. (no date)
- Lincoln Electric Corp. (no date)
- Radiologix Inc. (no date)
- UBS Warburg (no date)
- TravelCenters of America Inc. (no date)
- Oak Hill Partners LP (no date)
- Chase Securities (no date)
- DLJ (no date)
- CSFB (no date)
- Moody's Investors Service (no date)
- Standard & Poor's (no date)
- Chase Capital Partners (no date)
- Goldman Sachs (no date)
- Seagate Technology Inc. (no date)