No pricings seen; Alliant hits road; new Builders FirstSource busy; Toys topples

By Paul Deckelman and Paul A. Harris

New York, July 27 – The last week in July opened quietly in the high-yield primary arena on Monday amid continued investor concern about volatility in the global financial markets, seen putting a damper on new issuance.

Syndicate sources reported no pricings of any new dollar-denominated and fully junk-rated bonds by domestic or industrialized country borrowers, in contrast to Friday, when one deal worth $700 million, from Builders FirstSource, Inc., got done.

Traders saw active dealings in that Dallas-based building products provider’s new paper, mostly at or slightly below its par issue price.

The syndicate sources meantime said that Alliant Holdings I, LP had begun marketing a $535 million offering of eight-year notes to potential investors via a roadshow.

Elsewhere in the primary, players continued to await the pricing of Prime Healthcare Services, Inc.’s $700 million of eight-year notes – a deal originally expected to have gotten done last week but which remains in the market at this point.

And there was volatile trading in Toys ‘R’ Us. Inc. bonds, following news reports that companies that provide business insurance to the troubled specialty retailer’s vendors are refusing to provide coverage in some cases due to Toys’ continued and mounting losses.

Statistical indicators of junk market performance were lower across the board for a seventh successive session on Monday.

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