ATS Automation Tooling prices to cap $2 billion week; recent deals quieter but hold gains

By Paul A. Harris and Paul Deckelman

New York, June 12 – The high-yield primary market quieted down on Friday – a fitting end to a week that was considerably less busy than the prior week had been amid investor uncertainty and a shift of cash out of Junkbondland that was reflected in a series of daily cash outflows from high-yield mutual funds and particularly from high-yield exchange-traded funds.

Just one modestly sized deal was heard by syndicate sources to have priced during the session, Canadian automation solutions provider ATS Automation Tooling Systems Inc.’s $250 million of eight-year notes, which priced as a regularly scheduled offering off the forward calendar. Traders said the new bonds firmed smartly when they began trading in the secondary market.

That deal capped off a week that saw just $1.99 billion of new dollar-denominated and fully junk-rated paper from domestic or industrialized-country borrowers come to market in eight tranches. That was well down from the $9.83 billion that got done in 16 tranches the prior week, which ended June 5, according to data compiled by Prospect News.

Traders meantime said that deals that priced earlier in the week, such as Thursday’s twin offerings from Alere, Inc. and from Sealed Air Corp., were trading around the same solidly higher levels they had notched in initial aftermarket dealings after the bonds priced but at considerably lower volume than had been seen on Thursday.

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