Upsized Lennar deal drives by; new Cumberland notes firm; Tempo on tap; Rite Aid slides

By Paul Deckelman and Paul A. Harris

New York, April 19 – For a second straight session, the high-yield primary market saw a single U.S.-dollar-denominated and fully junk-rated offering price on Wednesday, as homebuilder Lennar Corp. did a quickly shopped $650 million of seven-year notes.

Traders saw the new bonds firm slightly on decently sized aftermarket volume.

They also saw considerable activity, at sharply higher levels, in the sole new deal to price on Tuesday, from regional convenience store chain operator Cumberland Farms, Inc.

Away from the new deals that have actually priced, primaryside sources said that Tempo Acquisition LLC, a financing vehicle for private equity firm the Blackstone Group LP’s pending acquisition of some technology assets of British insurer Aon plc, is expected to price a $730 million eight-year notes offering on Thursday.

Outside the new-deal realm, traders said a steep fall in world crude oil prices hammered bonds of energy issuers such as California Resources Corp.

And they saw Rite Aid Corp.’s bonds and shares swoon on news reports indicating that federal regulators might sue to block the drugstore chain's merger with larger rival Walgreens Boots Alliance.

Statistical market performance measures turned mixed on Wednesday after having been lower across the board on Tuesday. It was the third mixed session in the last four, after having also been mixed last Thursday, closed last Friday and mixed again on Monday of this week.

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