Netflix megadeal, Global Ship Lease price, FXI, Consol offerings slate; new GSL firms

By Paul Deckelman and Paul A. Harris

New York, Oct 23 – After two consecutive sessions of relative inactivity in which no new U.S. dollar-denominated and fully junk-rated paper was heard to have priced, the high-yield primary sphere came back to life in a big way on Monday, as a pair of such deals got done, generating $1.96 billion of new paper.

Most of that was attributable to internet media content company Netflix, Inc.’s quickly shopped $1.6 billion offering of 10.5-year notes, the biggest junk market offering in nearly three weeks.

Traders quoted the Netflix paper right around its issue price in initial aftermarket dealings.

The day’s other pricing was a $360 million regularly scheduled forward calendar offering of five-year secured notes from containership charter company Global Ship Lease Inc. Those bonds were heard to have firmed in active trading when they hit the secondary market.

High-yield syndicate sources meantime reported that several prospective new issues had joined the forward calendar, including deals from specialty chemical manufacturer FXI Holdings, Inc. and from coal company Consol Mining Corp.

Besides the aftermarket trading in the new Global Ship Lease and Netflix issues, market sources for the first time in several days saw a fair amount of activity in some recently priced credits, including Targa Resources Partners LP, West Corp., Crown Rock, LP, and, going back a little further, Tesla, Inc.

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