Iron Mountain two-parter, Calpine lead busy primary session; Chesapeake gains on debt swap

By Paul Deckelman and Paul A. Harris

New York, May 24 – The junk bond juggernaut rolled on on Tuesday, with the high yield primary sphere posting a second straight busy session after Friday’s pause.

Syndicate sources said that some $2.35 billion of new dollar-denominated, fully junk-rated paper priced in six tranches, most opportunistically timed and quickly shopped drive-by offerings.

That topped the $1.225 billion that got done in three tranches on Monday.

Document storage and disposal company Iron Mountain Inc. had the big deal of the day, a $750 million two-part deal consisting of five- and 10-year notes.

Power generation company Calpine Corp. brought an upsized $625 million of 10-year secured notes to market late in the session.

Match Group, Inc., an operator of online dating sites and provider of educational test preparation services, did $400 million of new eight-year notes.

Automotive components manufacturer Dana Holding Corp. priced $375 million of 10-year notes.

The smallest deal of the day – and the only regularly scheduled forward calendar offering – came from oil and natural gas operator Parsley Energy LLC.

Parsley’s new bonds, and those of Match Group, were seen by traders having firmed smartly when they were freed for secondary activity, more so than Iron Mountain and Dana’s new bonds.

Monday’s new deal from Gogo Inc. was also seen doing well in the aftermarket.

Away from the new deals, Chesapeake Energy Corp.’s bonds firmed on the news the oil and gas producer was doing a debt-for-equity swap.

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