Gates Global, Envision price in busy session; Gymboree, Toys ‘R’ Us rise despite losses

By Paul A. Harris and Stephanie N. Rotondo

Portland, Ore., June 12 – The high-volume high-yield primary market saw eight issuers price eight dollar-denominated tranches of notes on Thursday to raise a combined total of $3.31 billion.

Three of the eight tranches were upsized. One such deal was Envision Healthcare Corp.’s $750 million issue of 5 1/8% eight-year senior notes, which was upsized from $650 million.

Four came as drive-bys, including Compass Minerals International, Inc.’s $250 million issue of non-callable 10-year senior notes. The issue came upsized from $200 million and priced at par to yield 4 7/8%.

Of the seven that came with price talk, four came at the tight end and three came on top. Among them was Seventy Seven Energy Inc., which priced $500 million of eight-year notes at par to yield 6½%, the tight end of the 6½% to 6¾% yield talk.

The high-yield secondary finished Thursday’s session a bit weaker, but recently priced deals managed to hold their ground.

Gymboree Corp. and Toys ‘R’ Us Inc. reported earnings during the day. Though both companies reported a wider loss for the first fiscal quarter, their bonds actually managed to close in higher territory.

Gymboree bonds, for instance, were up as much as 4 points on the day, while Toys ‘R’ Us put on as much as 5 points. For its part, Toys ‘R’ Us did see a gain in same-store sales.

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