DaVita, iStar lead $3.7 billion day; new DaVita firms; RadioShack gyrates after numbers

By Paul Deckelman and Paul A. Harris

New York, June 10 – Junkbondland saw its busiest new-issue day in several weeks on Tuesday, as more than $3.7 billion of new dollar-denominated, fully junk-rated issues came to market in five tranches.

DaVita HealthCare Partners Inc.’s quick-to-market $1.75 billion was the big deal of the day, as well as the biggest name in the secondary market, firming a little from issue in heavy initial aftermarket dealings.

iStar Financial Inc. brought $1.32 billion in 3.5- and five-year tranches.

Several smaller deals also surfaced during the day.

Cott Beverages Inc. popped the top on a quickly shopped $525 million of eight-year notes, while Ferrellgas LP drove by with a $150 million addition to its existing 2022 notes.

The $3.745 billion that priced was the most new paper seen in the junk market since May 20, when $6.075 billion was priced in eight tranches, according to data compiled by Prospect News.

Away from the new-deal realm, traders said that secondary activity remained dull, although there was a little excitement in B/E Aerospace Inc. paper as the company announced plans to split into two entities.

RadioShack Corp.’s bonds bounced around after it reported another disappointing quarter, while asserting that its turnaround strategy is proceeding on schedule.

Statistical market performance indicators turned mixed on Tuesday after having been higher for a third straight session on Monday.

© 2015 Prospect News.
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