Four-part Tenet megadeal leads $5 billion primary session, Nokia, TRI Pointe also price

By Paul Deckelman and Paul A. Harris

New York, June 5 – The high-yield primary saw one of its biggest days of this or any other year, as more than $5 billion of new U.S. dollar-denominated and fully junk-rated new paper came to market in seven tranches.

The day saw two megadeal-sized offerings, including Tenet Healthcare Corp.’s $3.78 billion four-part issue of secured and unsecured notes.

The hospital operator’s quick-to-market transaction is the biggest junk bond deal seen so far this year, according to data compiled by Prospect News, as well as the biggest deal seen in Junkbondland in well over a year.

Traders did not immediately report any initial aftermarket dealings in any of the big deal’s tranches – but they did say that the company’s existing bonds were mixed in active trading across the capital structure on the news of that debt-refinancing deal.

The other billion-dollar offering came from Finnish cellphone maker Nokia Corp., which priced two equally sized $500 million tranches of five- and 10-year notes.

The 10-years were up modestly in busy aftermarket dealings, though much of the volume was generated by investment-grade oriented accounts.

Homebuilder TRI Pointe Group Inc. rounded out the day’s new-deal action with an upsized and quickly shopped $300 million of 10-year notes, which traded around their issue price.

Away from new-issue activity, traders saw energy credits such as California Resources Corp. retreat in line with lower world crude oil prices.

© 2015 Prospect News.
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