Calumet deal closes out $3.7 billion week; new Microns heavily traded; energy names move down

By Paul Deckelman and Paul A. Harris

New York, April 15 – The high-yield primary arena saw a single pricing on Friday to close out a considerably less busy week than the week before.

Calumet Specialty Product Partners LP, a producer and marketer of specialty hydrocarbon products, priced a $400 million issue of 4.75-year senior secured notes.

Traders did not report any immediate aftermarket activity in the new issue.

That Calumet deal capped off a week which saw $3.76 billion of new U.S. dollar-denominated and fully junk-rated notes come to market – less than half of the $10.92 billion that priced in nine tranches the previous week, according to data compiled by Prospect News.

In the secondary market, traders saw very heavy dealings in the new Micron Technology, Inc. 6.5-year senior secured notes that priced Thursday off the high-yield desks despite having investment-grade ratings and covenants. The notes remained up from their issue price.

Elsewhere, Western Digital Corp. notes got slammed for a second consecutive session, hurt by investor angst about the high-tech sector after competitor Seagate Technology released disappoint preliminary quarterly numbers.

Oil and natural gas names like Chesapeake Energy Corp. and Oasis Petroleum Inc. moved lower in line with falling crude prices.

Statistical market performance measures were mixed on Friday after having been higher across the board in each of the previous five sessions. It was the third mixed session in the last 11 trading days.

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