Zayo prices upsized add-on; new Western Digitals gain; funds lose $545 million

By Paul Deckelman and Paul A. Harris

New York, March 31 – Telecommunications company Zayo Group LLC drove by the junk bond market on Thursday, closing out the month of March and the year’s first quarter with an upsized $550 million add-on to its existing 2025 notes.

Given the lateness of the hour at which the deal priced, traders did not immediately report having seen any initial aftermarket dealings in the credit.

But they saw huge volume trading in the two giant-sized tranches of Western Digital Corp. notes which had priced during Wednesday’s session. While the computer hard-drive manufacturer’s purely junk-rated eight-year notes were by far the busiest issue of the day, its split-rated seven-year secured paper was seen racking up the best aftermarket gains.

Away from the new deals, traders saw brisk activity in Algeco/Scotsman Holding Sàrl’s bonds after the maker of modular building structures reported quarterly numbers, its chief executive officer tendered his resignation and the company hired advisers to help it look into its liquidity and financing.

Statistical market performance measures were higher across the board for a second consecutive session on Thursday; they had broken out of their recent slump on Wednesday after having been lower all around five straight sessions before that. But another market measure – flows of investor cash into or out of high-yield mutual funds and exchange-traded funds – turned negative this week to the tune of a $545 million net outflow in the reporting week.

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