BlueLine, Navient, Goodyear lead as primary explodes for $4.2 billion; funds out $240 million

By Paul Deckelman and Paul A. Harris

New York, March 2 – After three days of inactivity, the dollar-denominated part of the high-yield primary market came roaring back to life on Thursday, producing one of its heaviest new-issue volumes of the year so far.

Syndicate sources said that $4.2 billion of U.S. dollar-denominated and fully junk-rated paper from domestic borrowers came to market in six single-tranche issues, all but one quickly shopped drive-by transactions.

Construction equipment rental and leasing company BlueLine Rental’s upsized $1.1 billion of seven-year secured paper was the day’s big deal and the only one of the six offerings that was in the market overnight.

Financial services company Navient Corp. did $750 million of five year notes, a deal which, like BlueLine was upsized during the session.

Familiar issuer Goodyear Tire & Rubber Co. priced $700 million of 10-year notes.

Away from the new deals, traders said that Intelsat SA’s bonds were once again among the busiest issues – but unlike the previous three sessions results on Thursday were mixed, with some issues actually finally weakening.

Statistical market performance measures turned mixed on Thursday for the second time in the last three sessions.

Another numerical indicator – flows of investor cash into or out of high-yield mutual funds and exchange-traded funds – fell into negative territory as $240 million more left the weekly reporting-only domestic funds than came into them during the week ended Wednesday.

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