D.R. Horton, XPO Logistics drive by; new Horton bonds active; energy names shed gains

By Paul Deckelman

New York, Feb. 4 – Opportunistically timed and quickly shopped drive-by deals dominated the high-yield primary market on Wednesday, with syndicate sources citing a pair of such issues that priced, generating $916 million of proceeds.

D.R. Horton, Inc. led the pricing parade with an upsized $500 million issue of five-year notes.

Traders said that those new bonds firmed slightly when they hit the aftermarket, where they were among the most actively traded Junkbondland names of the day.

XPO Logistics, Inc. also did an upsized deal, in this case a $400 million add-on to the company’s existing 2019 bonds that it sold last year.

The day’s tally of new paper was about double the $450 million that had priced in two deals on Tuesday, from CrownRock, LP and from Service King Collision Repair Centers. Energy operator CrownRock’s new bonds were among the day’s busiest issues, holding onto most of the gains notched in Tuesday’s initial secondary market dealings.

Other energy credits, however, such as California Resources Corp. and Linn Energy, LLC – which had firmed solidly on Tuesday in line with a rise in the price of oil – were mostly in retreat on Wednesday, as crude prices came down from those Tuesday highs.

Statistical market performance indicators turned mixed on Wednesday after having been higher across the board for previous two sessions.

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