Springleaf add-on, Provident, Summit drive by; recent deals busy; Neiman-Marcus gains

By Paul Deckelman and Paul A. Harris

New York, May 24 – The high-yield primary market resumed its busy pace on Wednesday, as a total of $1.125 billion of new junk bonds were priced in a trio of quickly shopped new deals – up from the $500 million that had gotten done on Tuesday in a single transaction.

Consumer loan company Springleaf Finance Corp. – which had just visited Junkbondland exactly two weeks ago to price an issue of new five-year notes – came back for seconds on Wednesday, bringing a $500 million add-on tranche of those same notes.

Another loan company – Provident Funding Associates, LP, which specializes in residential mortgage lending – priced $325 million of eight-year paper.

The day’s sole new issue from something other than a financial company – concrete, cement and asphalt supplier Summit Materials, Inc. – was a $300 million issue of eight-year notes.

The latter issue was the only of the three initially seen in the aftermarket, firming smartly in brisk trading.

Secondary traders saw active dealings in new bonds that were priced earlier in the week, including Tuesday’s transaction from Navient Corp. and some of the deals that were priced on Monday, including KAR Auction Services, Inc., Chesapeake Energy Corp., PBF Energy, Inc. and Molina Healthcare, Inc.

Outside of the new-deal realm, Neiman Marcus Group, Inc. rose on a report that it has been in talks with real estate giant Related Cos. on a possible investment by Related in the recently underperforming luxury department store chain.

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