Spectrum drive-by opens year’s final month, new bonds firm; energy names gyrate at lower levels

By Paul Deckelman and Paul A. Harris

New York, Dec. 1 – The high-yield market got back to work on Monday following its lengthy Thanksgiving holiday break, which included Friday’s shortened and only sparsely attended session, and headed into the homestretch for the year.

December opened with one quick-to-market pricing – a $250 million transaction from consumer products maker Spectrum Brands Inc. That 10-year deal was heard by trader to have firmed by around a point from its issue price in brisk trading.

Among recently priced names, traders also saw considerable activity in KLX Inc.’s new eight-year issue, which fell about 1 point, in line with an overall easier market.

Other recent deals seen off from last week’s highs included Springleaf Finance Corp. and CDW Corp.

Apart from the deals that have already priced, junk market syndicate sources heard of several other prospective new deals being pitched to potential investors via roadshows, including offerings from Cott Beverages, Inc., Real AlloyHolding Inc., OneMaine Financial Holdings, Inc. and Superior Plus LP.

Outside of the new deal realm, energy names remained volatile, gyrating around at levels well below where they had been last week. While there was a sizable jump in world commodity markets in crude oil prices from the grossly oversold levels seen last week, energy sector bond prices only firmed modestly off their lows.

Among the oil and natural gas sector names seeing busy activity at those lower levels were California Resources Corp., Linn Energy LLC and Halcon Resources Corp.

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