Consolidated Energy prices to cap $10 billion week; recent deals busy, though off peaks

By Paul Deckelman and Paul A. Harris

New York, May 26 – The high-yield primary sphere closed out its busiest week in more than two months on Friday, as a single issuer priced the first half of what is expected to be a two-part offering, while pushing the other half off until the upcoming week.

Consolidated Energy Ltd., a holding company which invests in businesses involving alternative waste management services and energy production, priced $500 million of fixed-rate eight-year notes on Friday. The other part of that upsized $800 million two-tranche deal, consisting of five-year floating-rate notes, is expected to get done within the next few days.

That deal brought the amount of dollar-denominated and fully junk-rated paper from domestic or industrialized country borrowers during the week up to $9.70 billion in 18 tranches, according to data compiled by Prospect News.

Traders meantime saw notable volume on Friday in several of the week’s new deals, even given reduced attendance in the market and an early close ahead of Monday’s scheduled full shutdown of the junk bond in observance of Memorial Day.

They saw considerable trading in two issues which priced on Thursday – the two-part megadeals from retailer PetSmart, Inc. and NOVA Chemicals Corp.

Away from new or recently prices issues, traders saw bonds of energy credits such as California Resources Corp. and Denbury Resources Inc. on the rebound, in line with a bounce in world crude oil prices Friday.

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