Open Text, drive-by Aircastle price; Open Text jumps; energy names off as oil slides again

By Paul Deckelman and Paul A. Harris

New York, Jan. 12 – The high-yield primary sphere saw a pickup in activity on Monday for a second consecutive session.

Syndicate sources said that two single-tranche issues worth a collective $1.3 billion priced – roughly three times the $450 million of new dollar-denominated, fully junk-rated bonds that priced in two tranches on Friday.

Canadian business software provider Open Text Corp. priced an upsized $800 million of eight-year notes as a regularly scheduled forward-calendar deal. The new bonds firmed smartly when they hit the aftermarket and were the day’s most actively traded issue.

Aircraft leasing company Aircastle Ltd. brought a quickly shopped and upsized $500 million of seven-year notes to market. Those bonds were also higher in secondary dealings.

Friday’s offering from NCI Building Systems, Inc., which shot up by several points in immediate aftermarket dealings, were seen coming in a little from those highs in Monday’s trading.

Apart from those deals already priced, the syndicate sources saw Presidio Holdings Inc. start shopping around a $400 million offering of eight-year notes.

Virgin Media Inc. and Ziggo Bond Finance BV began marketing euro-denominated deals, though Virgin’s also has a dollar-denominated component. Sector peer Telecom Italia SpA priced a €1 billion split-rated eight-year issue.

Away from the new deals, energy names such as California Resources Corp., Halcon Resources Corp. and Linn Energy LLC were under pressure as crude oil prices again retreated.

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