Drive-by parade continues with Summit Midstream, Sinclair deals; new Calpine bonds busy

By Paul Deckelman and Paul A. Harris

New York, July 9 – Opportunistically timed, quickly shopped, same-day bond offerings dominated the Junkbondland primary sphere for a third consecutive session on Wednesday.

High-yield syndicate sources saw two such deals totaling $850 million of dollar-denominated, fully junk-rated new paper price during the session.

Sinclair Broadcast Group, Inc. did an upsized $550 million issue of 10-year notes via a subsidiary. Those bonds were quoted slightly higher when they hit the aftermarket.

Summit Midstream Partners, LP priced $300 million of eight-year notes, which were not seen trading around subsequently.

Calpine Corp. easily dominated the Most Actives list on Wednesday as both tranches – its 8.5-year and 10.5-year notes – each racked up more than $100 million of trades.

There was also brisk trading seen in Walter Energy, Inc.’s 2019 bonds a day after it priced an add-on to that issue.

Away from the new issues, for a third consecutive session there were busy dealings in the bonds of the former Radiation Therapy Services Inc., now known as 21st Century Oncology Holdings, Inc. Both of its outstanding issues were on the upside, in contrast to Monday and Tuesday, when the bonds had slid on investor angst over expected levels of Medicare and Medicaid reimbursements.

Statistical market-performance indicators turned mixed on Wednesday after having been lower across the board on Tuesday and mixed over four consecutive sessions before that.

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