Upsized Regency drive-by, Transworld price amid better tone; Peabody bonds gain after numbers

By Paul Deckelman and Paul A. Harris

New York, July 22 – The high-yield primary sphere shook off the rust of two days’ inactivity on Tuesday in pricing two offerings totaling $1.13 billion, syndicate sources said – Junkbondland’s first dollar-denominated deals since last Thursday.

Regency Energy Partners LP was heard to have brought an upsized $700 million issue of 8.25-year bonds to market in a quickly shopped same-session transaction. Traders said that after pricing at a noticeable discount to par, the new bonds firmed smartly when they hit the aftermarket and were among the most heavily traded junk credits seen on Trace.

Business services provider Transworld Systems, Inc. priced $440 million of 7-year secured notes via Aston Escrow Corp. as part of the funding for Transworld’s pending buyout.

Among other recently priced deals, several tranches of American Energy-Permian Basin LLC’s deal from last week were among the more busily traded credits on Tuesday.

But perhaps the busiest junk bond was not a new deal at all, but familiar coal-mining credit Peabody Energy Corp. Its 2021 notes were especially heavily traded – as well as higher – following the company’s release of quarterly results.

Statistical measures of market performance turned mixed on Tuesday after having been lower across the board on Monday.

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