Primary dry spell broken as Alliant prices; market extends rally; funds lose $1.7 billion

By Paul Deckelman and Paul A. Harris

New York, July 30 – The high-yield primary market finally saw its first pricing of the week on Thursday after three consecutive sessions before that during which no dollar-denominated, fully junk-rated offerings from domestic or industrialized-country issuers had priced.

Syndicate sources said that Alliant Holdings I, LP’s $535 million of eight-year paper got done. The notes were quoted slightly firmer in the aftermarket, but with no real volume seen.

Other deals potentially seen as Thursday pricings, including an $800 million seven-year offering from TerraForm Global, Inc. and Euramax Holdings, Inc.’s $385 million five-year note issue, had not priced by the time trading wrapped up for the day.

Primaryside players were also looking forward to Cable & Wireless Communications plc’s $750 million of seven-year notes, which is expected to price Friday.

Among recently priced issues, traders said Friday’s eight-year deal from Builders FirstSource, Inc. continued to tack on gains.

The overall junk market was seen mostly better, particularly oil and natural gas names like Linn Energy, LLC and California Resources Corp. But Key Energy Services Inc.’s bonds fell sharply on an earnings miss.

Statistical measures of junk market performance turned mixed on Thursday.

Flows of funds into and out of high-yield mutual funds and exchange-traded funds, considered a good barometer of overall junk market liquidity trends, showed their first outflow – $1.72 billion – after three straight weeks before that of inflows.

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