Sirius XM prices, trades up; L Brands at a discount; Mallinckrodt jumps; energy names down

By Paul A. Harris and Abigail W. Adams

Portland, Me., June 5 – The drive-by window was open on Wednesday with two refinancing deals pricing.

Sirius XM Radio Inc. priced an upsized $1.25 billion issue of 10-year senior notes (existing ratings Ba3/BB) at par to yield 5½%.

L Brands, Inc. priced a $500 million issue of 7½% 10-year senior notes (existing ratings Ba1/BB) at 98.286 to yield 7¾%.

Two deals remain on the forward calendar that are expected to price ahead of Friday’s close.

Grubhub Inc.’s $400 million offering of eight-year senior notes is expected to price on Friday, as is Stericycle, Inc.’s $550 million split-rated offering of five-year senior notes (/BBB-/BB+).

Meanwhile, the secondary space remained firm on Wednesday, closing the day unchanged to up slightly, sources said.

New paper from Sirius XM was in focus after breaking for trade with the notes trading in a wide range, a market source said.

Mallinckrodt plc’s junk bonds were on the rise on Wednesday following news of its settlement with the Department of Justice.

However, energy names remained under pressure with California Resources Corp.’s bellwether 8% senior notes due 2022 and Chesapeake Energy Corp.’s junk bonds trading down as crude oil futures continued to decline.

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