Mueller, Navient price, dominate trading; Rent-A-Center gains; funds lose $2.42 billion

By Paul A. Harris and Abigail W. Adams

Portland, Me., June 7 – The domestic high-yield primary market saw $950 million price in two deals on Thursday with one more on tap for Friday.

Navient Corp. priced a $500 million issue of eight-year senior bullet notes (Ba3/B+/BB) at par to yield 6¾% in a drive-by.

Mueller Water Products, Inc. priced an upsized $450 million issue of eight-year senior notes (Ba3/BB) at par to yield 5½%.

The new paper dominated activity in the secondary market after breaking for trade.

While both were seen above their issue price, Mueller’s new paper was the outperformer of the two deals, which sources attributed to the issuers’ respective industries.

Aleris International, Inc.’s $400 million offering of five-year notes is on tap for Friday.

Friday also promises to be a big day for the European primary market with Salt Mobile SA’s CHF 2,085,000,000 equivalent four-part offering of senior secured notes (B2/B+), which includes a dollar-denominated tranche, InterXion Holding NV’s offering of €1 billion of seven-year senior notes and Outokumpu Oyj’s offering of €250 million of six-year senior secured notes on tap.

Rent-A-Center Inc.’s junk bonds were up 2 to 3 points on Thursday amid rumors that the long-anticipated buy-out of the company is approaching.

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