Nuance drives by, PVH taps euro market; new Reynolds bonds rise; Toys up on re-fi news

By Paul Deckelman and Paul A. Harris

New York, June 14 – The recently red-hot high yield new-issue market dialed things back a little on Tuesday, failing to top the $1 billion mark for the first time in more than a week.

Syndicate sources said that just one new dollar-denominated and fully junk-rated issue from a domestic or industrialized-country borrower came to market during the session – a quickly shopped $300 million issue of eight-year notes from software provider Nuance Communications, Inc.

That was a far cry from Monday’s session – one of the busiest seen so far this year – when just over $4.9 billion had been priced by five issuers in a total of seven tranches.

Monday’s signature deal – the $2.9 billion three-part behemoth of a bond deal from Reynolds Group Holdings Ltd., the maker of the eponymous brand-name aluminum foil product – was seen doing well in the aftermarket in heavy trading, with its eight-year notes piece particularly strong.

Market sources also saw brisk dealings in some of the other deals that priced on Monday, including US Foods Holding Corp., AK Steel Holding Corp. and L Brands Inc.

Friday’s offering from Weatherford International Ltd. continued to lose ground.

Away from the dollar-denominated new-deal market, the syndicate sources reported a relatively unusual euro-denominated deal from a domestic company, the apparel maker PVH Corp.

Apart from the new deals, Toys “R” Us’ existing bonds shot up on positive news from the specialty retailer on its debt refinancing plans.

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