Tallgrass prices; Big Tex climbs; Corrections Corp. nosedives; funds gain $889 million

By Paul Deckelman and Paul A. Harris

New York, Aug. 18 – The recently busy high-yield primary market quieted down on Thursday, pricing just one $400 million offering.

The day’s sole issuer was Tallgrass Energy Partners LP, an energy master limited partnership, which came to market with a regularly scheduled offering of eight-year notes.

Traders saw the new notes trade up solidly when they hit the aftermarket, though not on particularly large volume.

Syndicate sources indicated that the Tallgrass pricing essentially clears the forward calendar cupboard of potential new deals.

Among already priced issues, traders saw Wednesday’s seven-year secured deal from Big Tex Trailers continuing to gain ground, on active volume.

They also saw continued brisk activity in Wednesday’s other transaction, the two-part megadeal from Diamond Resorts International, Inc. Its seven-year secured notes were trading around their par issue price, but its eight-year unsecured paper was still barely treading water.

Away from the new deals, traders said that Corrections Corp. of America’s bonds nosedived, along with its shares, as the federal government announced that it would phase out the use of privately owned and operated corrections facilities of the type that CCA operates.

Flows of investor cash in to or out of high-yield mutual funds and exchange-traded funds were on the upside for a second consecutive week. Some $889 million more came into those weekly-reporting-only domestic funds than left them in the form of investor redemptions during the week ended Wednesday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.