Ashton Woods prices, firms; new NGPL tranches jump on big volume; energy upturn continues

By Paul Deckelman and Paul A. Harris

New York, July 26 – Things quieted down a little in Junkbondland on Wednesday, as just one modestly-sized dollar-denominated deal was heard by syndicate sources to have priced – homebuilder Ashton Woods USA LLC’s $250 million eight-year issue.

Secondary traders said those new bonds firmed smartly in busy aftermarket dealings.

But it was Tuesday’s two-part $1.4 billion offering of five- and 10-year notes from energy pipeline operator NGPL PipeCo LLC that was the star of the show on Wednesday, with both tranches shooting up more than 2½ points on the day in heavy trading.

Also busy were recently priced new issues from AMC Networks, Inc. DAE Funding LLC and Exela Technologies.

Another recent deal – from Extraction Oil & Gas, Inc. – was quoted solidly higher, in line with a continued firming trend among energy credits such as California Resources Corp., EP Energy Corp. and Continental Resources Corp., helped by a third consecutive session of hefty gains in world crude oil prices.

Traders meantime saw continued weakness among hospital operators like HCA Inc., Tenet Healthcare Corp. and Community Health Systems Inc.; the sector was seen under pressure in response to disappointing earnings that HCA reported on Tuesday, as well as the uncertainty swirling around the fate of existing healthcare laws in the United States and their possible replacements.

Elsewhere, Toys R Us Inc.’s bonds were seen posting solid gains, although traders could not readily explain the rise in the specialty retailer’s paper.

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