Ardagh, Vector, Koppers price, seen firmer; Avaya gains on Chapter 11; funds lose $887 million

By Paul Deckelman and Paul A. Harris

New York, Jan. 19 – High-yield primaryside activity picked up sharply on Thursday, with a trio of new issues totaling $2.35 billion coming to market during the session.

Glass and metal packaging products maker Ardagh Group had the big deal of the day – a quickly shopped $1 billion offering of eight-year notes which priced via a pair of financing subsidiaries.

There were also two regularly scheduled deals coming off the forward calendar – tobacco and real estate holding company Vector Group Ltd.’s $850 million of eight-year secured notes and wood products producer Koppers Inc.’s upsized $500 million tranche of eight-year paper.

In the secondary market, traders said there was sizable aftermarket volume in the new Koppers and Vector bonds, with Koppers’ paper especially seen having firmed smartly when it was freed to trade. Vector and Ardagh were also quoted higher.

Apart from the new-deal realm, traders said that Avaya Inc.’s bonds were higher in active trading after the high-tech company filed for Chapter 11 protection in order to restructure its debt.

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

Another numerical gauge also turned negative, suffering its first setback of the new year in the latest reporting week as $887 million more left those weekly-reporting-only domestic funds in the form of investor redemptions than came into them during the week ended on Wednesday.

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