Navient megadeal, Standard Pacific pricings open November; forward calendar builds

By Paul Deckelman

New York, Nov. 3 – The month of November opened in Junkbondland with an active primary arena, but a not-so-active secondary sphere.

High-yield syndicate sources reported a pair of quick-to-market pricings totaling $1.3 billion, up somewhat from the $1 billion of new dollar-denominated, fully junk-rated paper from domestic or industrialize-country issuers that had priced during Friday’s final session of October.

The big deal of the day on Monday was a two-part, $1 billion offering from education finance products and services provider Navient Corp., split into equal-sized tranches of six- and 10-year bullet notes.

Earlier in the session, homebuilder Standard Pacific Corp. dropped in to price $300 million of 10-year bullets. Unlike the Navient deal, which came to market fairly late in the day, Standard Pacific came early enough in the session to allow for some aftermarket dealings, with the new bonds seen better in fairly active trading.

While those were the only two deals that actually priced, the sources saw several other prospective issuers either formally announce upcoming deals or else just heard the deals surface without a formal announcement.

Cruise-ship operator NCL Corp. was heard to have hit the road to begin marketing $680 million of five- year notes, which are expected to price sometime after mid-week.

Also going on the road were electronic components manufacturer Kemet Corp. with a $400 million offering of five-year secured notes and diversified holding company HC2 Holdings, Inc., which is doing a $250 million five-year secured notes deal.

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