Primary awaits TerraForma, Alliant pricings; Builders FirstSource bonds boom; oils up

By Paul Deckelman and Paul A. Harris

New York, July 29 – The high-yield primary market saw its third consecutive scoreless session on Wednesday, at least in terms of dollar-denominated, fully junk-rated issues from domestic or industrialized-country borrowers being priced.

However, syndicate sources said that primaryside participants could probably look forward to two deals getting done on Thursday: an $800 million seven-year offering from TerraForm Global, Inc. and Alliant Holdings’ $535 million of eight-year paper.

Among recently priced issues, traders saw Friday’s eight-year deal from Builders FirstSource, Inc. firming smartly in brisk trading on Wednesday, with the new notes quoted up more than 1 point on the day.

They said that was symptomatic of the overall junk market, with most issues seen moving higher, apparently taking their cues from stocks, which rallied strongly after the Federal Reserve’s policy panel voted to keep interest rates where they are, for now, and gave no indication when a long-expected rate rise might take place.

Also helping things along was a continued rally in crude oil prices, which gave oil and natural gas credits like California Resources Corp. and SandRidge Energy Inc. a boost.

Statistical measures of junk market performance were higher across the board on Wednesday for a second straight session; on Tuesday, they had decisively snapped a seven-session losing streak.

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