KCI megadeal prices, trades actively, Navient drives by; market easier, Freeport falters

By Paul Deckelman and Paul A. Harris

New York, Sept. 13 – Medical products company Acelity LP, Inc. – through its Kinetic Concepts Inc. subsidiary – was the big name in Junkbondland on Tuesday, pricing $1.75 billion of five-year secured notes in a regularly scheduled offering off the forward calendar.

The wound-care therapies company’s megadeal was the most heavily traded junk credit of the day, hovering around its issue price.

Financial services company Navient Inc. also got a deal done during the session – a quickly shopped $500 million of seven-year notes.

A U.S.-based company – paints and industrial coatings maker Axalta Coating Systems – tapped the European junk market with an 8.25-year offering.

The forward calendar grew, with new deals being shopped by IMS Health Inc., Cincinnati Bell Inc. and Brinker International Inc., among others.

The junk secondary market was mostly easier, against a backdrop of sharply lower stocks. Freeport-McMoRan Inc.’s bonds were particularly hard hit.

Statistical market performance measures turned lower across the board on Tuesday, after having been mixed on Monday. It was the second losing session in the last three.

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