Iron Mountain, Steel Dynamics drive-bys end primary drought; Toys ‘R’ Us tumbles

By Paul Deckelman and Paul A. Harris

New York, Sept. 6 – The high yield primary market saw its first new dollar-denominated issuance in more than two weeks on Wednesday, as a pair of quickly shopped offerings generated $1.35 billion of paper, syndicate sources said.

Document storage and record-keeping company Iron Mountain, Inc. brought an upsized $1 billion issue of 10-year notes to market, while metals producer and recycler Steel Dynamics, Inc. chimed in with $350 million of eight-year notes.

The two issues were the first such dollar-denominated high-yield deals seen in Junkbondland since Aug. 18, when financial services company Enova International Inc. priced $250 million of seven-year notes.

Secondary market traders quoted both of the day’s new issues a little higher, but on little volume.

While those two domestic issuers were pricing their dollar deals, two other companies based in the United States were tapping the euro junk bond market for fresh cash – data services provider Equinix, Inc. and specialty chemical manufacturer Kronos Worldwide, Inc.

Away from the day’s new deals, the recently priced eight-year issue from electric car manufacturer Tesla, Inc. once again saw fairly brisk trading volume.

Energy issues such as oil and gas exploration and production operator California Resources Corp. were seen better, in line with oil prices.

But Toys ‘R’ Us, Inc.’s bonds were down sharply in active dealings in response to news reports indicating that the underperforming specialty retailer had hired legal advisers from a firm known in bankruptcy circles.

© 2015 Prospect News.
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