WhiteWave prices to cap nearly $11 billion week; new California Resources, W.R. Grace deals jump

By Paul Deckelman and Paul A. Harris

New York, Sept. 12 – The high-yield primary sphere closed out its second big week in a row on Friday, serving up an upsized $500 million eight-year issue from WhiteWave Foods Co., a manufacturer of packaged consumer eatables. Those new bonds moved up solidly when they hit the aftermarket.

While that was the only deal to come to market during the session, it left the week’s tally of new issuance at a robust $10.74 billion in 17 tranches, according to data compiled by Prospect News. That was not too far behind the $11.56 billion of new U.S.-dollar denominated, fully junk-rated paper from domestic or industrialized country borrowers which came to market the previous week, ended Friday Sept. 5.

However, some contrarian murmurings were heard in Friday’s market, with syndicate sources noting the demise, at least for now, of two deals which were being shopped around – Capstone Mining Corp.’s $400 million of eight-year notes and Vistaprint NV’s $250 million of seven-year notes. Market conditions were cited as the reason for both withdrawals.

Traders meantime saw robust gains in some of the deals that priced on Thursday, notably energy operator California Resources Corp.’s $5 billion three-part issue of 5.5-year, seven-year and 10-year notes, and specialty chemicals maker W.R. Grace & Co.’s $1 billion two-part transaction. All five of those tranches were seen having gained at least 2 or 3 points from their par issue price.

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