Upsized returning First Data, Charter megadeals lead $7 billion primary; Men’s Wearhouse mauled

By Paul Deckelman and Paul A. Harris

New York, Nov. 5 – The high-yield primary sphere’s junk bond juggernaut rolled on during Thursday’s session – which was one of the heaviest days for new-issue volume seen so far this year.

The day’s big deal came from First Data Corp., with the transaction processor returning to the market with an upsized two-part $3.2 billion offering of eight-year secured bonds exactly one week after it had successfully priced $3.4 billion of eight-year unsecured notes

Cable and broadband operator Charter Communications Inc. priced $2.5 billion of 10.25-year notes.

Cruise-ship operator NCL Corp. Ltd. did an upsized $600 million of five-year notes, while HMO Molina Healthcare, Inc. brought an upsized $700 million of seven-year notes to market, the day’s only scheduled offering off the forward calendar.

All told, that added up to $7 billion in five tranches – the third biggest volume day of the year so far.

In the aftermarket, traders saw brisk upside activity only in the new Molina Healthcare notes.

Away from the new deals, Men’s Wearhouse Inc.’s bonds dropped in active dealings after the clothing retailer slashed its earnings outlook for the third quarter and the full year.

Statistical measures of junk market performance were lower across the board for a second straight session on Thursday. They had declined on Wednesday for the first time in more than a week, after having been higher on Monday and Tuesday, mixed last Thursday and Friday and higher last Wednesday.

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