Upsized Scientific Gaming, Realogy drive-by wrap $7 billion week; Hertz hurt on accounting woes

By Paul Deckelman and Paul A. Harris

New York, Nov. 14 – The high-yield primary market closed out a holiday-shortened week on Friday with a bang, almost doubling its prior new-issuance total.

Most of that paper came from just one issuer – Scientific Games International Inc., a New York-based maker of gaming industry technology.

It upsized its planned $2.9 billion two-part scheduled forward calendar offering of senior secured and unsecured notes to $3.15 billion, divided into a $950 million tranche of seven-year secured notes and $2.2 billion of eight-year unsecured notes.

The day’s other deal was a $300 million quick-to-market issue of seven-year notes from Realogy Holdings Corp., a Madison. N.J-based provider of residential real estate services.

Those deals just about doubled the amount of new paper that had priced earlier in the week – which was short one day due to Tuesday’s market close for the Veterans Day holiday observance in the United States. They brought the final tally up to $7.02 billion in 15 tranches, versus the $8 billion of new fully junk-rated, U.S. dollar denominated paper from domestic or industrialized-country borrowers that had priced in 17 tranches the week before, ended Friday, Nov. 7, according to data compiled by Prospect News.

Away from the new-deal realm, Hertz Corp.’s several issues of bonds were seen skidding lower, and on considerable volume, after the vehicle-rental giant confirmed investor worries that its accounting issues ran even deeper than previously thought.

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