Acadia, Hardie price; Dollar Tree ahead; energy names bounce; funds jump $2.67 billion

By Paul A. Harris and Paul Deckelman

New York, Feb. 5 – The high-yield primary sphere had only a moderately busy session on Thursday – but participants were gearing up for what promises to be a wild and woolly Friday, with over $6 billion of new paper from a variety of issuers seen possibly pricing.

Clearing the decks for the anticipated action, two regularly scheduled eight-year forward calendar issues totaling $697 million of proceeds priced on Thursday – an upsized $375 million of notes from Acadia Healthcare Co. Inc. and $325 million from James Hardie International Group Ltd.

Traders said the new Acadia Healthcare bonds performed robustly in the aftermarket.

Friday’s session will be led by deep-discount retailer Dollar Tree, Inc.’s upsized $3.25 billion two-part offering, part of the financing for its takeover of industry rival Family Dollar Stores Inc.

In the secondary market, energy names like California Resources Corp. remained on their roller-coaster ride; that company’s bonds, and other sector peers like SandRidge Energy Inc., had sizzled on Tuesday only to fizzle on Wednesday, both in line with oil-price gyrations. Along with crude, they were back on the upside on Thursday.

High-yield mutual funds and exchange-traded funds – considered a reliable barometer of overall junk market liquidity trends – saw their second giant-sized inflow in as many weeks, taking in a net $2.67 billion of fresh investor cash, putting those flows on a solidly positive footing for the year to date.

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