Jaguar Land Rover, Fortress Drawbridge add-on drive by; Cliffs Resources jumps on Q3 numbers

By Paul Deckelman and Paul A. Harris

New York, Oct. 28 – The high-yield primary sphere saw a pair of opportunistically timed, quickly shopped deals on Tuesday for a second consecutive session.

Syndicate sources said that the day’s total of new paper came to $600 million in two tranches – less than half of the $1.4 billion of new dollar-denominated, fully junk rated debt from domestic or developed-country issuers that had priced on Monday.

Luxury British carmaker Jaguar Land Rover Automotive plc led the day’s drive-by parade with a $500 million offering of five-year bullet notes. The new bonds moved up modestly in active trading.

There was also an upsized $100 million add-on issue to New York-based investment partnership Drawbridge Special Opportunities Fund LP’s existing 2021 notes.

Traders meanwhile saw a little bit of upside movement, though on no large volume, in Monday’s quick-to-market $1.1 billion sale of 10-year notes from construction supplies provider Building Materials Corp. of America.

Away from the new deals altogether, favorable quarterly numbers were driving iron and coal miner Cliffs Natural Resources Inc.’s recently beleaguered bonds solidly higher in very active dealings.

However, not-so-favorable numbers were seen as the catalyst for radio and outdoor advertising company iHeartMedia, Inc.’s notes to retreat, also in busy trading.

Statistical indicators of junk market performance turned mixed on Tuesday, after having eased across the board on Monday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.