Giant Dell high-grade deal overshadows junk market, draws HY attention; new Aramark busy

By Paul Deckelman and Paul A. Harris

New York, May 17 – The high yield primary market was largely quiet on Tuesday, syndicate sources said, with no new dollar-denominated and fully junk-rated deals seen having priced during the session.

Everyone’s eyes seemed to looking over on the investment-grade side of the fence, where Round Rock, Texas-based computer giant Dell, Inc. priced a $20 billion six-part secured bond deal.

As big as that upsized transaction was, it was dwarfed by the more than $80 billion of orders from investors, including at least $20 billion from nominally high yield accounts.

Almost as an afterthought, Dell also plans to do a junk-rated unsecured bond issue as part of the massive debt financing for its pending $67 billion acquisition of enterprise software and storage company EMC Corp. – but that high yield piece did not come to market on Tuesday. There’s no real out when it may.

Junk players did note that with the huge upsizing of the investment-grade portion of the financing, the speculative grade component will be sharply downsized from the $9 billion originally shopped around.

Away from the Dell deal, Irish aircraft leasing company AerCap Holdings NV parachuted in with a split-rated $1 billion offering of 5.75-year notes, which also attracted some attention in the junk precincts.

Back among the purely junk-rated names, both halves of Monday’s $1 billion two-part deal from foodservice, facilities management and uniform supply company Aramark Services Inc. saw active trading on Tuesday.

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