Pulte megadeal, Navient, Ineos and Xerium price in $2.7 billion session; Post busy

By Paul Deckelman and Paul A. Harris

New York, July 26 – The high yield primary saw its busiest session in well over a month on Tuesday, as four issuers combined to bring some $2.74 billion of new dollar-denominated and fully junk-rated paper to market.

The day’s biggest deal was a quickly shopped, upsized $1 billion two-part offering from homebuilder Pulte Group, Inc. consisting of a $400 million add-on to its existing 2021 notes plus a new stand-alone $600 million of 10.5-year notes.

Financial services company Navient Corp. also drove by with an upsized $750 million of five-year notes.

A pair of deals priced as regularly scheduled forward calendar offerings.

Swiss chemical company Ineos Group Holdings SA did $500 million of eight-year notes as part of a dual-currency two-part transaction totaling €1.1 billion equivalent that also included an eight-year euro-denominated tranche.

And back in the domestic market, industrial textile manufacturer Xerium Technologies, Inc. priced $480 million of five-year secured notes at a discount to par.

Tuesday’s issuance was the heaviest volume of new paper seen in Junkbondland since June 13.

The day’s total topped the most recent heavy-volume day, which took place one month later, on July 13, when four issuers each brought a single-tranche deal, adding up to $2.225 billion.

Traders saw heavy trading in Monday’s upsized big deal from breakfast cereal maker Post Holdings, Inc., with the new bonds not straying far from their issue price.

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