KLX megadeal closes $11.8 billion week, new notes jump in heavy trading, new MGM also gains

By Paul Deckelman and Paul A. Harris

New York, Nov. 21 – The high-yield primary sphere closed out the week on Friday with just one new deal seen having come to market during the session – but it was a big one, as KLX, Inc., being spun off from aircraft interior components manufacturer B/E Aerospace, Inc., touched down in Junkbondland with a $1.2 billion issue of eight-year notes.

Traders said that the forward calendar offering firmed solidly on heavy trading when it moved into the aftermarket following pricing.

They also saw a considerable amount of action in MGM Resorts International’s new 8.25-year megadeal, which had priced late in the session on Thursday but which did not begin trading in the secondary realm until Friday. Those bonds gained more than a point when they finally began to trade.

Those deals swelled the week’s tally of new issues to $11.81 billion in 21 tranches, according to data compiled by Prospect News. That was up from the $7.41 billion that priced in 15 tranches during the previous week, ended Nov. 14.

Traders said the main focus of activity in the secondary market this week had been trading in new or recently priced issues.

But aided by a better equities market, junk had a better tone to it on Friday, as reflected in the behavior of statistical indicators of secondary market performance.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.