Enova caps slower $4.4 billion week; Tesla, Staples pressured; Calpine mostly off on buyout

By Paul Deckelman and Paul A. Harris

New York, Aug. 18 – The high-yield primary market saw a single smallish deal on Friday, syndicate sources said, bringing to a close a mid-summer week considerably more relaxed than the two preceding weeks.

Online financial services provider Enova International Inc. had the day’s sole dollar-denominated and fully junk-rated deal, a $250 million issue of seven-year notes that priced following a roadshow.

Those notes edged up a little when they hit the aftermarket, a trader said, though on not much volume.

The Enova deal raised the week’s total of new junk bond issuance to $4.4 billion in eight tranches.

Among recently priced deals, traders said that the new bonds of electric car manufacturer Tesla, Inc., office supplies retailer Staples Inc. and heavy equipment manufacturing and service company H&E Equipment Services, Inc. were among the most actively traded high-yield credits on the day, with Tesla and Staples continuing to struggle, trading well under their par issue prices. However, H&E Equipment continues to trade at a solid premium to par.

Away from the new deals, the news that power generation company Calpine Corp. is to be acquired in a $5.6 billion deal – $17 billion including assumed debt – resulted in active trading for some of its bonds, mostly at lower levels on the day.

Statistical market performance measures turned mixed on Friday after being lower across the board on Thursday.

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