Companies Dash to the Bond Market After M&A Deals Are Agreed

Earthstone Energy Holdings LLC is tapping the US high-yield bond market Tuesday to help fund its acquisition of Novo Oil & Gas Holdings LLC, a purchase announced less than two weeks ago.

The company, which operates oil and gas properties, is the latest to quickly commence a debt offering after disclosing an M&A transaction.

This speedy borrowing is most likely due to the possibility of future volatility and because of the time of the year, according to Frank Ossino, senior portfolio manager at Newfleet Asset Management.

“Capital markets are open, giving borrowers the opportunity to go to the ...