Pharmaceutical Product Development megadeal prices; Sears, Frontier surge; oils slide

By Paul Deckelman and Paul A. Harris

New York, Aug. 3 – The month of August opened on a robust note in the high-yield primary sphere on Monday, as Pharmaceutical Product Development LLC priced a quickly shopped $1,125,000,000 offering of eight-year notes, the day’s sole pricing of new dollar-denominated, fully junk-rated paper from domestic or industrialized-country borrowers.

There was other news circulating around Junkbondland’s primary market as well, including Vista Outdoor, Inc.’s announcement that it will sell $300 million of eight-year notes, which are being marketed to potential investors via a roadshow that began Monday.

But another prospective issuer, Petroceltic International plc, said it had suspended formal marketing of its planned $175 million issue of three-year secured paper, citing market conditions.

There was continued activity in Friday’s new notes from Cable & Wireless Communications, plc and TerraForm Global, Inc., with both credits remaining well up from their respective issue prices.

Away from the new-deal world, Sears Holdings Corp.’s 6 5/8% bonds jumped on the retailer’s announcement that it would tender for $1 billion of the bonds.

Frontier Communications Corp.’s bonds rose across the company’s capital structure, helped by better-than-expected financial results and an update on financing plans for its purchase of assets from Verizon Communications Inc.

On the downside, energy names such as California Resources Corp. and SandRidge Energy, Inc. were lower in the wake of continued falling oil prices.

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