Consolidated Energy, Halyard Health price; Zebra gain continues; funds lose $2.28 billion

By Paul Deckelman and Paul A. Harris

New York, Oct. 2 – High-yield primary activity picked up on Thursday. The session saw $1.49 billion of new dollar-denominated, fully junk-rated paper come to market in three tranches, versus the previous session’s lone $150 million offering.

However, almost all of the day’s total came from just one deal. Consolidated Energy Ltd. did a $1.25 billion two-part offering via a financing subsidiary. This included $1.05 billion of fixed-rate five-year notes and $200 million of five-year floating-rate paper.

The deal came to market too late in the day for any kind of secondary dealings.

Earlier, Halyard Health, Inc., a producer of surgical and infection prevention products and medical devices being spun off from health and hygiene consumer products company Kimberley-Clark Corp., priced $250 million of eight year notes, which were seen to have firmed when they hit the aftermarket.

The week’s only other new deal, Tuesday’s downsized megadeal from Zebra Technologies Corp., was again among the most actively traded Junkbondland names on Thursday. The notes continued to add to their already hefty initial aftermarket gains.

Statistical indicators of junk market performance turned mixed on Thursday after having been higher for two straight sessions and lower over the previous three sessions before that.

Another statistical measure, the flow of cash into and out of high-yield mutual funds and exchange-traded funds, showed a large outflow this week that more than offset the inflow reported last week.

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