Callon sells upsized deal, dominates trading; Deutsche drops; Apex gains; fund flows flat

By Abigail W. Adams

Portland, Me., May 31 – While primary action has been light throughout the week, opportunistic issuers waiting for improved market conditions came forward on Thursday with both the domestic and the European primary market seeing some action.

Callon Petroleum Co. priced an upsized $400 million offering of eight-year senior notes (B3/B+) at par to yield 6 3/8% in a Thursday drive-by.

The new notes dominated trading activity after breaking although they remained wrapped around par, sources said.

In the European market, Marine Harvest ASA priced €200 million of five-year senior bonds on Thursday with a coupon of Euribor plus 215 basis points.

While the new paper was the focus of trading activity, Deutsche Bank AG’s junk-rated subordinated bonds were losing ground on Thursday with the notes seen down 2 points after news broke that the bank was given a troubled designation by the Federal Reserve one year ago.

Apex Group Inc.’s 8¾% senior notes due 2020 were making gains on Thursday, reversing the downward trends the notes have been on since the company released its first-quarter earnings report.

Meanwhile, high-yield mutual funds and exchange-traded funds were essentially flat in the latest week, seeing $18 million of outflows in the seven days ending May 30, according to fund-flow statistics generated by AMG Data Services Inc.

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