Downsized Telesat prices; new bonds move up; CF deal on tap; health care dives on Trump win

By Paul Deckelman and Paul A. Harris

New York, Nov. 9 – After three consecutive sessions on the sidelines, the high-yield primary sphere got back to business on Wednesday, as satellite communications company Telesat Canada priced a downsized $500 million of eight-year notes.

Traders said that the new bonds had firmed smartly when they hit the aftermarket, up by around 2 points on the day.

The new-dealers were meantime awaiting Thursday’s anticipated pricing for CF Industries, Inc.’s $1.25 billion two-part secured note offering, which will now be run off the investment-grade desks but which continues to attract considerable interest from investors in Junkbondland.

Away from the new deals, there was considerable activity on the downside in health-care names such as Community Health Systems, Inc., Tenet Healthcare Corp. and HCA Inc. Traders cited market fears that the election of Donald Trump as president could spell trouble for the hospital operators and other health-related names, given his campaign promises to repeal Obamacare.

Statistical market performance measures were mixed on Wednesday for a second straight session. They had turned mixed on Tuesday after having been higher across the board on Monday for only the second time in the last 11 sessions. Wednesday was the fourth mixed session in the last five trading days.

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