Range Resources, Boyd sell; earnings push around commodity names; funds lose $2.75 billion

By Paul. A Harris and Stephanie N. Rotondo

Portland, Ore., May 7 – The high-yield new issue market continued to crank out a moderate to heavy news volume on Thursday.

Five issuers priced single-tranche deals to raise a combined total of $2.73 billion.

Executions were tight, especially given the meaningful deal upsizings. Three of the five tranches came at the tight ends of talk, and the other two came either in the middle or on top of talk.

Among the issuers were Range Resources Corp., which brought a $750 million issue of 4 7/8% 10-year notes, and Boyd Gaming Corp., which priced $750 million of 6 7/8% eight-year notes.

Activity in the secondary high-yield market was centered on commodities Thursday.

After releasing earnings late Wednesday, Energy XXI bonds were trading mixed Thursday. SandRidge Energy Inc. also came out with numbers Wednesday, and though those bonds were initially weaker, they finished Thursday with a firmer tone.

MolyCorp Inc. meantime announced its earnings early Thursday, but despite a wider loss, the debt ended steady.

Continuing the earnings trend, Chesapeake Energy Corp. was drifting downward on the heels of results out Wednesday.

Dedicated high-yield funds saw $2.75 billion of outflows in the week to Wednesday's close, according to a sellside source who was relating data reported by Lipper-AMG.

Of that amount, 79% was withdrawn from high-yield exchange-traded funds, the source said.

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