Upsized JBS prices, also Indigo, Oceaneering; new Indigo firms; energy up as crude gains

By Paul Deckelman and Paul A. Harris

New York, Feb. 1 – The new month of February opened up in Junkbondland on Thursday with a pair of new deals pricing, generating some $1.55 billion of proceeds.

Giant meatpacker JBS USA Lux, SA brought a quickly shopped and upsized $900 million of 10-year notes to market.

And natural gas and natural gas liquids exploration and production company Indigo Natural Resources LLC priced a regularly scheduled $650 million offering of eight-year paper.

Secondary market traders said the new Indigo issue notched some solid gains when it began trading in the aftermarket.

The primaryside also saw split-rated oilfield services provider Oceaneering International, Inc. come to market with a scheduled $300 million deal, which later traded around its issue price.

Energy was also strong away from the new deals, with sector benchmark credit California Resources Corp. firming smartly in active trading Thursday, in line with a big jump in world crude oil prices, which were up markedly, their second consecutive gain following a recent dip.

Statistical market performance measures fell across the board on Thursday, after being mixed on Wednesday.

Another numerical indicator – flows of investor cash into or out of high yield mutual funds and exchange-traded funds – remained in negative territory for a third straight week as $1.75 billion left those weekly reporting-only domestic funds.

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