Drive-by parade rolls on as Sabre, Central Garden, Summit price; new deals active, higher

By Paul Deckelman and Paul A. Harris

New York, Nov. 4 – The high-yield primary market extended its November activity streak to three-for-three on Wednesday as several more new issues of dollar-denominated and fully junk-rated paper from domestic or industrialized-country borrowers got done during the session.

And was the case on both Monday and Tuesday, opportunistically timed and quickly shopped drive-by offerings dominated the proceedings.

Syndicate sources said that Sabre Corp. priced $500 million of eight-year secured notes.

Central Garden & Pet Co. did $400 million of eight-year unsecured notes.

Traders said that both of those new bonds pushed above the 101 bid level when they were freed for aftermarket dealings but that the Central Garden & Pet bonds were by far the busier of the two.

Very late in the session came word of another unscheduled pricing, Summit Materials, Inc.’s upsized add-on to its existing eight-year notes, although full terms were not immediately available and no aftermarket activity was initially reported.

The traders meantime saw very active dealings in many of the bonds that had priced earlier in the week, with most of those credits trading at solidly higher levels versus their respective issue prices.

Away from the new deals, Chesapeake Energy Corp.’s bonds were under pressure after company reported lackluster third-quarter results, missing analysts’ expectations on earnings and revenues.

Statistical measures of junk market performance turned lower across the board on Wednesday for the first time in more than a week.

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