Aurora Diagnostics plans debt as junk bonds sales rebound

Aurora Diagnostics Inc., a provider of diagnostic laboratory services, plans to sell U.S. debt after sales of junk bonds rose last week to the highest level since September.

Aurora diagnosis can sell $ 230 million seven-year notes, according to a person familiar with the operation. Debt can be issued as early as today, said the person, who requested anonymity because the terms are not set.

High risk, sales of companies with high bond yields rose last week to $ 12 billion, the most since the period ended September 24. The issue is accelerating as consumer confidence rose to U.S. a maximum of six months and exports rose to the highest since August 2008.

Novelis Inc., the unit of Atlanta-based aluminum India's Hindalco Industries Ltd., sold $ 2.5 billion of notes in an offering of two parts of Australia Fortescue Metals Group Ltd. for $ 1.5 billion of debt after nearly doubling the size of its operation to bring the issue of junk-rated corporate bonds last week.

The extra yield investors demand to have speculative-grade bonds shrank by 6 basis points on December 10 for 554, the narrowest since April 29, while yields were little changed at 7.93 percent, according to the Bank United States of America High-yield Master II index. Spreads tightened 38 basis points and yields fell 7 basis points last week, the index data show.

The high-yield bonds are rated below Baa3 by Moody's Investors Service and below BBB-by Standard & Poor's. A basis point is 0.01 percentage point.

Credit Ratings

Aurora Diagnostic notes' are classified B2 by Moody's and "CCC +" by Standard & Poor's. The company Palm Beach Gardens, Florida, based on plans to use proceeds from its sale to refinance debt, pay for the acquisition and for general corporate purposes, the source said.

Spreads on investment grade bonds tightened 11 basis points to 171 last week and yields rose 29 basis points to 4.144 percent, according to Merrill Lynch Bank of America U.S. index Corporate Master.

Societe Generale SA, the Paris-based bank, and Merck & Co., the drug maker's second-largest U.S. after Pfizer Inc., for every dollar of debt sold 2 million for direct investment grade offerings in the U.S. last week.

The following is a description of at least 4.24 billion U.S. dollars of pending sales of bonds denominated in U.S. dollars

Investment Grade

FIRST GULF BANK PJSC plans to sell bonds denominated in dollars and five years can yield between 3.25 percent and 3.5 percent, said three people familiar with the transaction, who declined to be identified because the terms are not set. BNP Paribas SA, Citigroup Inc., Deutsche Bank AG, HSBC Holdings Plc and National Bank of Abu Dhabi PJSC are organizing meetings with investors, two people, said on 1 November. The lender based in Abu Dhabi is rated A2 by Moody's.

TRANSNET LTD., State ports in South Africa, rail and pipeline operator, said it would sell $ 1 billion of bonds in international markets to fund the expansion. Transnet has 35.2 billion rand (U.S. $ 5 billion) of debt outstanding.

High Performance

Syniverse Holdings Inc., the communications equipment to be acquired by Carlyle Group, plans to sell $ 475 million eight-year senior notes, according to a person familiar with the operation. The income can be used to finance the acquisition, said the person, who requested anonymity because the terms are not set. Debt can be described Caa1 by Moody's Investors Service and B-by Standard & Poor's, said the source.

NCO Financial Group Inc., the insurance company formerly known as Conseco Inc., plans to sell $ 300 million seven year senior secured notes, according to a company press release distributed by PR Newswire. The revenues can be used, together with loans under a new $ 325 000 000 secured credit facility and available cash, to retire existing senior credit financial CNO, the Caramel, Indiana-based company said in a statement.

RES-Care Inc., a provider of support services to people with special needs, plans to sell $ 200 million senior notes due in 2018 through a private placement, the company said in a statement distributed by Globe Newswire. The revenues can be used to repurchase outstanding senior notes due 2013 and to fund an exchange of shares in a subsidiary of Onex Corp. will acquire Res-Care, the statement said.

AURORA Diagnostics Inc., a closely held company specialized laboratory, plans to sell $ 230 million seven year senior unsecured notes, according to a person familiar with the deal, who declined to be identified because the terms are not set. The bonds may be issued through the company's diagnostic Holdings LLC Aurora and Aurora Diagnostics Financing Inc. unit, the source said.

ConvaTec Inc., a medical products company, plans to sell 1.87 billion U.S. dollars in bonds to refinance debt to finance leveraged buyouts, according to three people with knowledge of the transaction. The company, owned by Nordic Capital AB and Avista Capital Partners, will issue 1.18 billion U.S. dollars eight-year senior unsecured notes denominated in dollars and euros and the equivalent of $ 690 million seven-year senior secured notes in euros, said people, who declined to be identified because the sale is private.

IFH PERU LTD. plans to add up to $ 100 million to 8,625 of its 2,019 percent bonds, according to two people with knowledge of the sale. IM Barclays Capital and Trust is managing the sale.

SWIFT SERVICES Holdings Inc., a unit of the largest truck carrier in North America, plans to sell $ 490 million eight-year senior secured bonds of second priority, according to two people with knowledge of the sale. Bank of America, Morgan Stanley, Wells Fargo Securities, Citigroup Inc., Deutsche Bank AG and UBS AG are managing the sale. The notes will be used to repay existing debt, the people said.

MDA Lending Solutions, information and service provider solutions to real estate lenders, may sell $ 175 million senior subordinated notes to help pay for its leveraged buyout by TPG Capital, according to a statement from Moody's. The MacDonald, Dettwiler and Associates Ltd. unit is also seeking $ 400 million loan.

AFRENA PLC, a UK oil and gas explorer focused on West Africa, hired Deutsche Bank AG, Goldman Sachs Group Inc. and BNP Paribas SA to manage the sale of senior secured bonds in dollars, according to two people with knowledge of the sale. The company, bond investors in Europe and the U.S., said the people, who declined to be identified because the terms are not set.

Cyrela Brazil Realty SA Empreendimentos e Participacoes, Brazil's largest construction company, hired by the Banco do Brasil SA, Credit Suisse Group AG, Itau and Unibanco Holdings SA Morgan Stanley to arrange meetings bond investors, according to a person familiar with the matter. Cyrela will meet investors in Asia, Europe and the U.S., said the person, who declined to be identified because the talks are private. S & P raised its rating on the company one step at BB on 30 September.

DELONG HOLDINGS LTD., A steel trader based in Singapore, has hired Credit Suisse Group AG to help arrange meetings with investors before an international sale of senior secured bonds. The money raised will be used to redeem 5 percent convertible bonds due 2012 to pay bank loans and purchases related to iron ore and other raw materials used by the steel industry, the company said in a informed the Singapore Stock Exchange. The dollar-denominated notes were assigned a provisional rating of B3 by Moody's, the company's credit risk in a note.

Flakeboard Co., the Canadian producer of fibers and particles used to make furniture and countertops, plans to sell $ 225 million senior secured notes due 2017, S & P said in a statement. Company rating grades the U.S. proposal of debt denominated in dollars and B, the statement said.

PT ENERGI MEGA Persada, the other part of Indonesia, the largest oil company in the list, Nomura Holdings Inc. hired to help with a sale of dollar bonds, according to a person familiar with the matter who declined to be identified because the terms are not set.

IF THE ORGANIZATION INC, Lockheed Martin Corp. unit formerly known as the Group of integration of the company, may sell $ 175 million senior subordinated notes, S & P. The revenues can be used with $ 340 million bank debt and $ 370 million new common shares to pay for its acquisition of Veritas Capital, S & P said.

Pipeline Offerings

American International Group, the insurer bailed out by the U.S. government is considering a sale of new debt, a person familiar with the matter. The company has not considered a deadline for when it might sell more bonds, said the person, who requested anonymity because the terms are not set. AIG sold $ 2 billion of bonds from 01 December in its first offer, since he was rescued by the U.S. government in 2008.

RURAL ELECTRIFICATION SA, a lender controlled by the State in India to project power, hired Credit Agricole CIB, Royal Bank of Scotland Group Plc and Standard Chartered Plc to sell $ 500 million in bonds. Rural Electrification is to note the price of 5.5 years to produce between 195 basis points and 200 basis points more than similar maturity U.S. Treasuries Director of Finance Khunteta Hari Das said in a telephone interview from New Delhi on 10 November.

PTT EXPLORATION AND PRODUCTION PCL, Thailand contained only oil and gas explorer, plans to sell bonds denominated in U.S. dollars, according to a person familiar with the deal. PTT Exploration hired Barclays Plc to manage the sale, said the person, who requested anonymity because the terms are not set. Barclays is a U.S. organization program dollar medium-term notes for the company, the source said.

PTA Bank, and Eastern and Southern Africa Trade and Development Bank has hired HSBC Holdings Plc and Standard Bank Group Ltd. for meetings bond investors in Europe and Asia, according to two people with knowledge of the sale. The meetings will be held in Hong Kong, Singapore, Zurich, Geneva and London, said the people, who declined to be identified because the terms are not set. The company may sell bonds in dollars after the meetings, the people said.

MXO specialized machinery Trust, a special purpose company intended to provide mechanical engineering services for Corporacion GEO, SAB de CV, Banco Santander SA hired to organize the meetings of bond investors, according to a person with knowledge of the sale. A sale of dollar bonds can follow the matches to be held in London, Boston, New York and Los Angeles, said the person, who requested anonymity because the terms are not set.

CREDIT BANK OF MOSCOW plans to sell dollar bonds five years, according to a person familiar with the operation. The Reg S stock sale is being organized by Commerzbank AG, ING Groep NV and Raiffeisen International Bank, said the banker.

DOHA BANK QSC, the third largest bank in Qatar, has hired Morgan Stanley and JPMorgan Chase & Co. to manage a planned 500 million U.S. dollars in bond sales, its chief executive, said. The offer, announced in Qatar Exchange Web site will be marketed to investors in the U.S., Europe and the Middle East, Raghavan Seetharaman said in a telephone interview on 20 October.

BELARUS can sell debt in the U.S. and Asia, according to Finance Minister Andrei Kharkovets. "We are undoubtedly entering the Asia and U.S. markets," he said in an interview Kharkovets 15 October in Moscow, declined to comment on the timing of sales possible.

GEORGIA RAIL LLC, the former Soviet republic of the state railway company, is preparing an exhibition in the U.S. bond, Giorgi Gagnidze, chief financial officer, said in comments broadcast on Rustavi-2 television.

AL BARAKA BANK OF EGYPT CES Group a unit of Bahrain-based Albaraka Banking, may sell dollar-denominated Islamic bonds in the second half of 2011, the bank's president said on 29 September. The bank has not decided on the size of the bond, he said.

TURKIYE IS Bankasi AS hired JPMorgan Chase & Co., Royal Bank of Scotland Plc, Standard Bank Plc and Standard Chartered to help find buyers for a sale of bonds in the meetings scheduled in the U.S. and Europe. Isbank made the announcement of the Istanbul Stock Exchange after the market regulator approved the sale of 1450 billion lire ($ 1,030,000,000) bond by the bank. Isbank said the sale will be in dollars.

AEGIS LTD., An external drive from Essar Group, may sell non-convertible bonds in dollars first company information technology in India. The company, which bought PeopleSupport Inc. in 2008, can sell their bonds as part of a financing package that includes a loan of up to $ 350 million to consolidate debt, finance director of CM Sharma said.

JSW Steel Ltd., the third largest steel company in India, plans to sell dollar bonds for the first time in three years as finance rupee-denominated costs rise. JSW has applied for credit rating before a bond sale on the high seas as possible to help build a plant of 200 million rupees (4.3 billion) steel and power in West Bengal, said Finance Director Seshagiri Rao.

ARGENTINA can sell $ 1 billion of bonds due in 2017, the newspaper The Chronicle, without saying how it obtained the information. The government is also planning to offer an exchange of dollar bonds due in 2011 and 2012, the publication based in Buenos Aires, he said.

Indonesia plans to name three banks to help sell about $ 650 million Islamic bonds, Siamat Dahlan, head of Islamic finance in the Ministry of Finance said in a telephone interview in Jakarta. The government sold its first international Islamic bonds in dollars in April 2009.

URUGUAY can sell up to $ 1 billion of bonds in 2011, including $ 500 million dollar debt, Carlos Steneri, director of public credit in the Uruguay Ministry of Economy and Finance said in a June 3 conference Latin Finance in London. The dollar-denominated bonds may last 20 years or more, Steneri said.

MALAYSIA plans to raise about $ 1 billion in its first sale of dollar bonds conventional eight years after drawing five times the rates for Islamic debt offerings, a Finance Ministry official said. The government can hire to banks CIMB Group Holdings Bhd and HSBC Holdings Plc to arrange the sale on 30 September, said the official, who asked not to be identified as the discussions are private. Malaysia raised $ 1,250,000,000 dollars a bond Shariah-compliant on 27 May. Malaysia is rated A3 by Moody's and A-by S & P.

GHANA is considering selling its bonds in dollars in 2011 to take advantage of investor demand and the start of oil production drives economic growth and reduce the budget deficit, Deputy Finance Minister Fifi Kwetey said. The government was considering a "no-deal roadshow" to gauge the appetite of international investors, Kwetey said in an interview May 26 in Abidjan. Ghana sold its first global bond in 2007, raising $ 750 million to help finance the construction of roads and power plants.

MONGOLIA plans to raise $ 500 million bond sale in 2010 and the rest of a projected 1.2 billion U.S. dollars of the program will be sold according to market conditions, Batbayar Balgo, director general of the department of financial and economic policy Mongolia, told a forum in Ulan Bator on June 16. The government dropped its plans to sell global bonds after the debt crisis of Europe drove up borrowing costs. Investment banks are advising Mongolia to issue debt with a maturity of 5 years to 10 years, Finance Minister Sangajav Bayartsogt said in an interview from 09 February. Values can produce 8 percent to 11 percent, he said.