DISH DBS drive-by leads $3.7 billion session, existing DISH notes fall on new-deal news

By Paul Deckelman and Paul A. Harris

New York, Nov. 5 – High-yield primaryside activity picked up sharply on Wednesday, with syndicate sources hearing of four single-tranche offerings having priced, bringing in a total of $3.73 billion of new dollar-denominated, fully junk-rated paper.

That far topped the paltry $45 million which had come to market in on tranche one Tuesday.

The day’s big deal came from satellite television broadcaster DISH DBS Corp., which did an upsized $2 billion drive-by offering of 10-year notes.

The DISH deal came to market too late in the day for any real aftermarket activity – but traders said that the news that DISH would be bringing a sizable new issue to market hammered down several issues of the company’s existing bonds in active dealings.

Back on the new-deal front, MSCI Inc., a provider of investment decision support tools to the financial industry, brought $800 million of 10-year notes to market. Cruise-ship operator NCL Corp. sailed in with a $680 million issue of five-year notes, while automotive components manufacturer Nexteer Automotive Group Ltd. did a $250 million offering of seven-year notes.

The day’s new deals, other than the late-breaking DISH, were heard by traders to have moved up when they reached the aftermarket. NCL’s five-year notes were the most active of those issues.

Statistical indicators of junk market performance were stronger across the board on Wednesday, after having fallen all-around during Tuesday’s session.

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