Primary roars back to life with $3.85 billion priced; issues firm after pricing; AMD gains

By Paul Deckelman and Paul A. Harris

New York, Sept. 7– The high-yield primary sphere resumed new-deal activity with a vengeance on Wednesday as five issuers brought a total of $3.85 billion of new dollar-denominated and fully junk-rated paper to market in six tranches, most of them opportunistically timed and quickly shopped drive-by offerings.

The big deal of the day was aluminum products producer Novelis Corp.’s $1.5 billion of 10-year notes.

Packaging products maker Ardagh Group SA priced $770 million of seven-year secured notes as part of a two-part offering that also included a tranche of euro-denominated paper.

Broadcaster Gray Television, Inc. hit the tape with $725 million of new junk split into two tranches, a new eight-year issue and an add-on to its existing 2026 bonds.

Oil and gas operator SM Energy Co. priced $500 million of 10-year notes, while building materials manufacturer Louisiana-Pacific Corp. chimed in with a $325 million eight-year offering.

Traders said that all of the new issues firmed when they hit the secondary market, some generating active volume.

Away from the new issues, Advanced Micro Devices, Inc.’s paper was higher across that company’s capital structure, on the news that the semiconductor manufacturer will tender for some of its existing bonds using the proceeds from offerings of equity and convertible notes.

Statistical market performance measures were mixed for a third straight day on Wednesday.

© 2015 Prospect News.
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