Albertsons, Hertz, MultiPlan megadeals lead considerably busier day; new deals trade up

By Paul Deckelman and Paul A. Harris

New York, May 25 – The already robust high-yield primary market picked up steam on Wednesday. A total of six issuers brought an eye-popping $5.44 billion of new dollar-denominated and fully junk-rated paper to market.

Albertsons Cos. LLC priced $1.25 billion of eight-year notes in a regularly scheduled forward calendar offering. The new notes were seen by traders to have firmed smartly on active volume when they hit the aftermarket.

Very late in the day, Hertz Global Holdings, Inc. brought an upsized $1.24 billion of secured six- and eight-year notes to market via its equipment rental unit, while earlier in the day, MultiPlan Inc. did a downsized $1.1 billion of eight-year paper. MultiPlan’s new bonds jumped in busy secondary dealings.

TransDigm Inc.’s quickly shopped 10-year offering fell just shy of megadeal territory, at $950 million, and was quoted slightly higher.

Open Text Corp. upsized its quick-to-market 10-year offering to $600 million, with the bonds seen solidly better when they were freed to trade.

Rounding out the day’s pricing activity, homebuilder CalAtlantic Group Inc. drove by with a $300 million 10-year issue.

The day’s new-issue total was the second-heaviest session of the year so far, according to data compiled by Prospect News.

Traders also saw brisk volume in some of the bonds that had priced on Monday and Tuesday from the likes of U.S. Concrete, Inc., Match Group, Inc. and Iron Mountain, Inc.

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