Visant jumps in heavy trading on Jarden buyout news; market softer; primary stays quiet

By Paul Deckelman and Paul A. Harris

New York, Oct. 14 – The high-yield market was softer for a second straight session on Wednesday, traders said.

But there’s an exception to every rule, and Wednesday’s outlier was Visant Corp., whose bonds surged in heavy trading on the news that the company – best known as the leading producer of school yearbooks, class rings and other such commemorative educational keepsakes – has agreed to be acquired by consumer products manufacturer Jarden Corp.

The latter company’s notes were meantime little changed on expectations that whatever financing it lines up for the $1.5 billion acquisition should have little or no impact on the company’s credit.

Energy-sector names like California Resources Corp. remained under pressure as crude oil prices eased slightly amid more signs of continued sluggish world economic conditions, which are expected to hold down demand for energy.

The primary arena meanwhile remained quiet. A roadshow was scheduled to begin for the sole dollar-denominated deal being marketed, an eight-year offering from medical devices manufacturer Greatbatch Ltd.

Statistical measures of junk market performance turned lower on Wednesday after having been mixed first on Friday and then again on Tuesday, which, in turn, had followed higher across-the-board sessions last Wednesday and Thursday.

Wednesday’s lower session was the first such downside day the indicators have seen since Sept. 29.

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