Rivers Pittsburgh prices, new deals move up; Cloud Crane on tap; funds jump by $4.3 billion

By Paul Deckelman and Paul A. Harris

New York, July 14 – The high-yield primary market had a more relaxed day on Thursday as just one new deal – casino operator Rivers Pittsburgh – rolled the dice on a $415 million issue of five-year secured paper.

Traders said that junk investors regarded the deal as pretty good bet, taking it higher in aftermarket dealings.

That rise was right in line with the gains posted by the various bond issues that had priced during Wednesday’s much busier $2.73 billion new-deal session.

They said that the new notes of Nexstar Broadcasting Group, Inc., Ashland Inc.’s Valvoline motor oil subsidiary, Holly Energy Partners LP, Extraction Oil & Gas Holdings LLC and Medical Properties Trust, Inc. were all up solidly from their respective issue prices, in busy trading.’

Away from the issues which have actually priced, syndicate sources said that heavy equipment rental company Cloud Crane is expected to price a $470 million eight-year secured issue, probably during Friday’s session.

Statistical market performance measures turned mixed on Thursday, after having been lower across the board on Wednesday – the first setback for those market gauges since June 27 – and higher all around for four straight sessions before that.

However, another numerical indicator – flows of investor cash into or out of high-yield mutual funds and exchange-traded funds, which are considered to be a reliable barometer of overall junk market liquidity trends –posted a second consecutive net inflow this week, following three consecutive weekly outflows.

That inflow was the second-largest on record, as $4.351 billion more came into those weekly-reporting-only domestic funds than left them in the form of investor redemptions during the week ended Wednesday.

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