HCA megadeal prices, trades actively; Team Health, ContourGlobal slate; market moves lower

By Paul Deckelman and Paul A. Harris

New York, Nov. 9 – After a one-day pause, the high-yield primary sphere on Monday resumed the kind of high-volume pricing activity seen for most of last week.

Just one offering of dollar-denominated, fully junk-rated paper was heard by syndicate sources to have come to market during the session, but it was a sizable one, as HCA Inc. did a quickly shopped $1 billion of 10.25-year notes.

Traders said the new HCA bonds were among the day’s busiest but were up only slightly from their issue price. The company’s existing notes, meantime, retreated in active trading.

The market sources said that overall, the junk market was lower, taking its cues from the battering that stocks received as investors began worrying about the prospect of a Federal Reserve move next month to start pushing up interest rates following stronger-than-expected October jobs numbers reported on Friday.

Among the issues backpedaling on Monday were new deals from Charter Communications, Inc. and First Data Corp.

Away from the new deals, it was another tough day for Men’s Wearhouse Inc.’s investors as the apparel retailer’s bonds and shares continued the slide begun on Thursday.

Mallinckrodt plc’s bonds and shares plunged as Citron Research said in a Tweet that Mallinckrodt was in some ways worse than Valeant Pharmaceuticals International Inc. and promised more details.

Statistical measures of junk market performance were lower across the board for a fourth straight session on Monday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.