Heinz prices $2 billion secured deal as blizzard quiets market; Regency jumps on buyout deal

By Paul Deckelman and Paul A. Harris

New York, Jan. 26 – A huge approaching Northeast snowstorm threw a soggy white blanket over the high-yield market on Monday, as many market participants in the area took the advice of the mayor and the governor of New York and made an early exit ahead of a scheduled mass-transit operations wind-down.

But if there wasn’t exactly a blizzard of new deals in Junkbondland – two offerings, in fact, were pulled due to varying market conditions – the day did see the biggest new high-yield offering of the year so far. Pittsburgh-based packaged foods giant H.J. Heinz Co. opened up a $2 billion drive-by offering of 10-year secured notes.

That issue priced late in the day, with no immediate aftermarket activity seen. However, traders said existing Heinz paper softened.

There was considerable activity in Friday’s eight-year issue from TerraForm Operating LLC, which was essentially unchanged.

Friday’s other new deal, from Platform Specialty Products Corp., traded at firmer levels.

Away from the new-deal arena, Regency Energy Partners LP’s bonds were sharply higher on the news that 22% owner Energy Transfer Partners will acquire the remainder of Regency in an $18 billion cash and stock deal.

Cliffs Natural Resources Inc. gained as the coal and iron ore company announced plans to eliminate its dividend in order to pay down debt.

Statistical indicators of junk market performance were higher across the board for a fourth consecutive session on Monday.

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