Downsized Builders FirstSource caps $3.8 billion week, new bonds firmer; Thompson Creek gyrates

By Paul Deckelman and Paul A. Harris

New York, July 24 – The high-yield primary sphere closed out the week on Friday with a downsized eight-year deal, syndicate sources said, as Builders FirstSource, Inc., a supplier of building materials, priced a $700 million regularly scheduled forward calendar offering.

The new bonds were seen having firmed modestly when they hit the aftermarket.

Including the week’s biggest junk offering – telecom operator SoftBank Group Corp.’s $2 billion of dollar notes, split into two tranches – the Builders FirstSource transaction brought the week’s tally of new dollar-denominated, fully junk-rated paper from domestic or industrialized-country borrowers to $3.83 billion in six tranches.

Among existing issues, traders said that energy names such as California Resources Corp. seemed to have stabilized around the lower end of the range that such credits had traded down to in volatile dealings earlier in the week, holding steady in that area.

There were some gyrations in Thompson Creek Metals Co. Inc.’s bonds, with its secured issue sliding but its unsecured paper posting solid gains. There was no fresh news immediately seen about the mining company that might explain the bonds’ activity.

Statistical measures of junk market performance were lower all around for a sixth consecutive session on Friday.

They were also lower across the board versus where they had finished out last week, after having been mixed on a Friday-to-Friday basis the week before. It was the indicators’ third losing week in the last four.

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