Greatbatch, Concordia price, new bonds diverge; recent Frontier, Cablevision deals busily firmer

By Paul Deckelman and Paul A. Harris

New York, Oct. 20 – Tuesday was a busy – and usual - day in the high-yield primary arena.

Syndicate sources said that medical devices maker Greatbatch Ltd., as expected, came to market during the session with a $360 million scheduled forward calendar offering of eight-year notes.

However, a second pricing caught many in the market by surprise, as Canadian pharmaceuticals company Concordia Healthcare Corp. made an early-morning announcement that it had priced $790 million of seven-year notes – a deal that was on junk marketeers’ radar screens but which had not been expected to imminently price during the session.

Even more surprising – secondary traders said that Concordia’s new bonds dropped sharply in heavy trading that shot the new deal right to the top of the Most Actives list, while the company’s existing bonds moved up on active volume.

The new Greatbatch notes, meanwhile, showed solid aftermarket gains, though on only limited trading.

Among recently priced deal which were seen actively moving around on Tuesday, traders reported that the multi-part megadeals from wireline telecom provider Frontier Communications Corp. and from Neptune Finco Corp., the special-purpose vehicle issuing bonds to help finance European cable operator Altice NV’s pending acquisition of domestic sector peer Cablevision Systems Corp., were both seen firmer on the session. Statistical measures of junk market performance turned mixed on Tuesday, after having been higher across the board Friday and then again on Monday.

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