Lithia prices, rises; new Hovnanians continue climb; Valeant firms on asset-sale news

By Paul Deckelman and Paul A. Harris

New York, July 17 – The new week opened quietly on Monday in the high -yield primary market, as a single deal was heard by syndicate sources to have priced.

They said that automotive retailer Lithia Motors, Inc. brought a $300 million issue of eight-year notes to market as a regularly scheduled forward calendar offering.

When those new bonds hit the aftermarket, traders said they were well-received, firming by more than 1 point in very active dealings.

The traders also saw continued strong gains, on brisk volume, in both halves of Friday’s offering of five- and seven-year secured paper from homebuilder K. Hovnanian Enterprises, Inc.

Another gainer was last week’s dollar-denominated issue from British performance carmaker McLaren Automotive.

Away from the issues that have already priced, syndicate sources said that junk investors – with ample cash on hand and a dearth of recent new-deal activity – were anticipating likely pricings this week from DAE Funding LLC, HD Supply Waterworks and Jefferies Finance LLC.

Outside of the new-deal realm, traders said that Valeant Pharmaceuticals International Inc.’s bonds firmed on news of an asset sale and anticipated debt paydown.

Statistical market performance measures were higher across the board for a fourth straight session on Monday; they had turned upwards on Wednesday and had continued improving on Thursday and again on Friday, after being mixed for three consecutive trading days before that.

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