Building Materials prices; market tanks amid broader sell-off; commodity names pressured

By Paul A. Harris and Stephanie N. Rotondo

Portland, Ore., Sept. 22 – Two issuers brought single-tranche deals to the high-yield market on Tuesday, raising a combined total of $1.5 billion.

Building Materials Corp. of America priced $1.1 billion of 6% 10-year notes, and Orbital ATK, Inc. priced a $400 million issue of 5˝% eight-year notes. Both priced at par.

The high-yield market took a hefty hit Tuesday as investors across the board sought safety.

Commodity-linked names in particular got pushed down amid weakening materials prices. For its part, domestic crude oil dropped 1.47% on the day.

“Commodities were down all across the board,” one trader said.

A trader also noted that ZF North America Capital Inc. bonds were “so active” and “trading off,” though he wasn’t clear why. He opined that the price drop was due to Volkswagen’s recent emissions scandal.

Another sector getting shocked was telecommunications. Frontier Communications Corp.’s recently priced deals came in, as did Cablevision Systems Corp. paper, which has been coming in since it was announced last week that Altice NV was taking over the company.

Cablevision Systems began a roadshow on Tuesday for a $6.3 billion two-part offering of high-yield notes backing the acquisition.

NN, Inc. plans to start a roadshow on Wednesday in New York for a $300 million offering of eight-year senior notes (Caa1/B).

Unisys Corp. talked its $350 million offering of five-year senior secured notes (Ba2/BB) to yield in the 8% area.

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