Ally, E*Trade, SM Energy, Solera lead $2.7 billion post-holiday drive-by deal parade

By Paul Deckelman and Paul A. Harris

New York, Nov. 12 – It was back to work on Wednesday in the high-yield market following Tuesday’s market close in the United States for Veterans Day, and when the session was over, some $2.7 billion of new dollar-denominated, junk-rated paper had priced in six tranches.

The day’s biggest offering, some $800 million of five-year notes, came from Ally Financial, Inc. Like all of the junk paper that came to market on Wednesday, Ally was a drive-by offering that priced just hours after it began shopping that benchmark-sized deal around.

SM Energy Co. upsized its offering of eight-year notes to $600 million, and Solera Holdings, Inc. also upsized its transaction, bringing a total of $400 million of add-ons to its existing Audatex North America, Inc. 2021 and 2023 notes.

E*Trade Financial Corp. priced $540 million of eight-year notes, which moved up modestly in the aftermarket on robust volume.

Kennedy-Wilson, Inc. brought a $350 million addition to its existing 2024 notes to market on Wednesday. Those notes were also heard by traders to have firmed after pricing.

The traders also saw brisk volume in Monday’s offering of eight-year notes from SuperValu Inc.

Away from the new deals, Sun Products Corp. was the most active junk credit of the day, as investors reacted positively to the consumer products manufacturer’s earnings report.

© 2015 Prospect News.
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