Health Montreal sells C$1.37 billion; high-yield readies for new deal; Garda bonds gain

By Cristal Cody

Prospect News, June 7 - Health Montreal Collective LP priced its offering of C$1.371 billion of senior amortizing bonds on Tuesday, according to a Canadian bond source.

The bond deal was the only one priced on the day, but the Canadian high-yield market is gearing up for a sale or two, according to a couple of insiders.

"Next week there will be a large deal," one high-yield source said. "The market still seems to have a good bid for anything high-yield in Canada. We just need more product."

Another high-yield source expects an upcoming deal in Canada's manufacturing sector.

In the corporate market, there was "not much of a change" on Tuesday, a high-grade bond source said.

"Canada corporate (AA) 10-year went to 3.9886% from 3.9775% yesterday," the source said.

The secondary market saw a little more activity.

The bonds reopened the previous week from Garda World Security Corp. traded higher on Tuesday, according to a high-yield source close to the deal.

Sino-Forest Corp. also took up a good chunk of trading, as investors attempt to get a handle on what is going on with the company. A trader said it was difficult to get a clear picture of what was going on and whether or not the fraud allegations by Muddy Waters research were true or not.

"In the best of times, there is very little transparency, so there is even less now," he said.

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