Sterigenics deal caps nearly $10 billion week, heads higher; recent deals busy, market firmer

By Paul A. Harris and Paul Deckelman

New York, May 8 – The high-yield market closed out the first full trading week in May on an upbeat note on Friday, with traders reporting anecdotally that the market was looking better, while key performance indicators were stronger on the session.

There was just one pricing in Junkbondland - Sterigenics-Nordion Holdings LLC’s $450 million of eight-year notes, a regularly scheduled forward calendar offering.

The day’s relatively relaxed pace stood in stark contrast with the hectic pace seen on Thursday, when five deals totaling $2.73 billion of new dollar-denominated junk-rated paper from domestic or industrialized-country borrowers had come to market, and especially versus Wednesday’s session, when $3.95 billion of such paper got done in six tranches, according to data compiled by Prospect News.

Friday’s issuance lifted the week’s total to $9.96 billion in 16 tranches.

The new Sterigenics deal generated brisk demand once it hit the aftermarket, gaining more than a full point from its issue price, with the bonds finishing near the top of the day’s Most Actives list.

There meanwhile was considerable activity in recently priced issues, including Thursday’s offerings from Boyd Gaming Corp., SM Energy Co. and Range Resources Corp., as well as the megadeals that priced earlier in the week from HCA Inc. and Chemours Co.

With the new and recent deals leading the way, traders said Friday’s market was considerably firmer than Thursday’s, as borne out by the statistical market performance indicators, which were higher across the board after three consecutive sessions on the downside.

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