Upsized Unitymedia deal, drive-by Hub add-on price; oil bonds rebound, Claire’s paper retreats

By Paul Deckelman and Paul A. Harris

New York, Dec. 3 – Activity quickened in the high-yield primary market on Wednesday as syndicate sources heard of two pricings generating $834 million of new dollar-denominated, fully junk-rated paper.

Germany’s Unitymedia Hessen GmbH & Co. KG and affiliate Unitymedia NRW GmbH priced an upsized $550 million of senior secured notes due January 2025 as part of a larger €1.45 billion equivalent two-part transaction that included a tranche of similar euro-denominated notes.

Syndicate sources also said that Hub International Ltd. did a quickly shopped $280 million add-on to its existing 2021 notes.

Away from the issues that have actually priced, sources said that prospective new deals emerged from JBS USA LLC and Constellium NV. Both are expected to price Friday.

Outside the new-deal realm, traders saw active dealings in energy names like Halcon Resources Corp., Sandridge Energy Inc. and California Resources Corp., and at mostly higher levels, as the battered oil and natural gas company paper began recovering from its recent selloff.

Claire’s Stores Inc.’s bonds, on the other hand, were in retreat after the retailer reported its latest earnings data, giving up the gains notched on Tuesday ahead of the numbers.

Statistical market performance indicators turned higher across the board Wednesday after having been mixed on Tuesday and having ended on the downside all around over the two sessions before that.

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