CVR upsizes to close out less-busy $3 billion primary week; new Yum! bonds climb in heavy trading

By Paul Deckelman and Paul A. Harris

New York, June 3 – The high yield primary market closed out the first week of June on Friday with an upsized new deal – though it still left the week’s issuance well below the sizzling pace seen last week.

CVR Partners, LP, a maker of nitrogen-based fertilizer, came to market with an upsized $645 million of seven-year secured notes that priced as a regularly scheduled offering off the forward calendar.

CVR’s transaction brought the week’s new-issuance total up to $3.08 billion in four tranches.

Traders saw busy dealings in all of this week’s new issues.

They said the new CVR notes moved up solidly from their deeply discounted price on active volume when they hit the aftermarket.

But the busiest name of the day was Yum! Brands, Inc., the fast-food giant which had brought $2.1 billion of new eight- and 10-year notes to market on Thursday. The 10-years were the most active bonds in Junkbondland, with the eight-years not far behind, and both were about a point above their respective issue prices.

Away from those new deals, Chemours Co.’s bonds were getting clobbered for a second straight session, with investors worried after a scathingly critical research report said the chemical company – spun off just a year ago from industry giant DuPont – might face enormous environmental-related liabilities from its former parent’s decades of chemical dumping activities. Statistical market performance measures were higher on Friday after being mixed on Thursday and lower across the board on Wednesday.

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