Mercer, upsized Owens-Illinois deals lead $3.5 billion session; new issues dominate trading

By Paul Deckelman and Paul A. Harris

New York, Nov. 18 – The high-yield primary sphere kept up a steady pace on Tuesday, with syndicate sources hearing that some $3.55 billion of new junk bonds had priced.

The big deal of the day came from Owens-Illinois Inc., who priced an upsized $800 million deal split into seven- and 10-year notes, which moved up slightly after pricing in brisk trading.

Mercer International Inc. did its own $650 million two-parter, consisting of five- and eight-year notes, which firmed smartly when they hit the aftermarket.

Moog Inc. upsized its eight-year note offering to $300 million. Those bonds also were seen solidly higher in post-pricing trading.

Lear Corp. priced $650 million of 10-year notes, which were quoted trading slightly below their issue price on busy volume.

MarkWest Energy Partners, LP brought $500 million of 10-year notes to market, but they were not seen initially trading.

Lennar Corp.’s $350 million of five-year notes were up slightly from their issue price.

No immediate aftermarket was seen in Penske Automotive Group Inc.’s $300 million of 10-year senior subordinated notes.

Traders meantime reported continued heavy volume in the issues that had priced Monday – Equinix, Inc., Level 3 Communications, Inc., Huntington Ingalls Industries, Inc. and Multi-Color Corp.

They said that – as had been the case on Monday – new or recently priced deals pretty much dominated the Junkbondland Most Actives list.

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