Rexnord, Navient add-on, revived NRG price, new issues active; funds gain $310 million

By Paul Deckelman and Paul A. Harris

New York, Nov. 30 – The high-yield primary sphere closed out a busy month of November on Thursday with a trio of new dollar-denominated and fully junk-rated deals generating $1.6 billion of new paper, syndicate sources said.

NRG Energy, Inc. opportunistically returned to the market with an $870 million issue of 10.25-year notes – just a few weeks after having pulled the same kind of issue from the forward calendar, citing less favorable market conditions. This time around, the power generating company was able to get investors to accept the kind of yield that it had wanted to achieve earlier but could not.

Industrial manufacturer Rexnord Corp. priced a regularly scheduled $500 million offering of eight-year notes.

Financial services company Navient Corp. did a quickly shopped $250 million add-on to the five-year notes that it had sold earlier this year.

Besides the day’s new deals, traders saw considerable activity in recently priced offerings from issuers such as James Hardie Industries plc, PQ Corp. and Endeavor Energy Resources, LP.

Statistical market performance measures were trending higher on Thursday, after having been mixed for the previous three consecutive sessions.

Another numerical indicator – flows of investor cash into or out of high-yield mutual funds and exchange-traded funds – broke out of its month-long negative rut this week, as $310 million came into those weekly-reporting-only domestic funds.

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