Virgin Media, split-rated Masco deals price, Fortescue shelves offering; energy fades more

By Paul A. Harris and Paul Deckelman

New York, March 17 – The high-yield primary market continued along on Tuesday on the same semi-relaxed pace noted on Monday.

Only one tranche of dollar-denominated, fully junk-rated new bonds priced during the day, a $500 million offering of 11-year notes from Virgin Media, which also priced a euro-denominated 12-year issue.

The new dollar bonds traded actively, moving up slightly from their par issue price.

The only other dollar-denominated pricing of the day was not a junk bond, strictly speaking, but a split-rated offering from Masco Corp. Its $500 million of 10-year notes moved higher in active aftermarket dealings.

The day’s tally of new junk-only bonds was meanwhile a little bigger than the $400 million that had priced on Monday; that deal, from Vulcan Materials Co., meanwhile firmed smartly in busy dealings.

And there was continued sizable trading in the three huge tranches of bonds that Valeant Pharmaceuticals International Inc. priced on Friday.

One deal that’s not getting priced – at least for now – is Fortescue Metals Group Ltd.’s $2.5 billion seven-year secured offering, with sources hearing that the megadeal had been postponed.

Recently priced energy names such as Energy XXI Gulf Coast Inc. and more established credits in that same sector such as Chesapeake Energy Corp. continued to get beat up as oil and natural gas prices continued to slide.

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