Schaeffler brings three-part deal, IHS drives by; recent deals gain, Peabody up again

By Paul Deckelman and Paul A. Harris

New York, Oct. 21 – The high-yield market continued to shrug off its recent weakness like a bad dream on Tuesday, as primaryside activity volume picked up and new and recent issues were seen having firmed smartly in brisk trading.

The $1.95 billion session’s big deal was a three-part dollar- and euro-denominated offering from a financing subsidiary of German automotive and industrial bearing manufacturer Schaeffler AG. It priced dollar-denominated tranches of five-and eight-year senior secured PIK toggle notes, as well as a seven-year euro-denominated piece.

Traders said that after pricing, both of the dollar-denominated tranches jumped multiple points, and were among the most actively traded notes of the day.

Business information and analytics company IHS Inc. meantime did an upsized $750 million of eight-year notes, although these came to market too late for any secondary dealings.

There was also a small add-on offering from chemical components company TPC Group Inc., which gained about a point in the aftermarket.

Traders saw active dealings at higher levels in other recent deals, including Monday’s two-part offering from alcoholic beverage company Constellation Brands Inc. and Friday’s transaction from Nova Chemicals Corp.

Away from the new deals, existing issues were seen mostly stronger; among the standout names, for a second straight session, was Peabody Energy Corp., after the coal producer’s report of a narrower-than-expected third-quarter loss.

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