Summit Materials drives by; Solera sets talk; Valeant rebounds, but Intelsat slide worsens

By Paul Deckelman and Paul A. Harris

New York, Feb. 23 – The high yield primary sphere saw its first new fully junk-rated deal in a week on Tuesday, as cement and asphalt producer Summit Materials, Inc. priced a quickly shopped $250 million offering of seven-year notes.

Priamryside players, meantime said that Solera, LLC set price talk on its $2.03 billion dollar- and euro- denominated eight-year note offering. The automobile insurance claims software provider’s transaction is expected to price on Thursday.

Away from the new deals, Valeant Pharmaceuticals International Inc.’s bonds bounced off their Monday closing lows in heavy trading to recover part of that session’s losses, which had been spurred by the news that the Canadian drug manufacturer would likely have to restate some of its recent financial results.

But there was no such respite for Intelsat SA’s beleaguered bonds, which had fallen sharply on Monday after the communications satellite company released worse-than-expected preliminary fourth-quarter and full-year revenue statistics and announced that it had hired an adviser to assess its financing and balance sheet initiatives – and which slid even further, in heavy trading, on Tuesday.

A downturn in world crude oil prices, as Saudi Arabia ruled out making any production cuts any time soon, helped pull some energy issues lower, among them Whiting Petroleum Corp.

Statistical market performance measures turned mixed on Tuesday after having been higher across the board on Monday, their second mixed session in the last four trading days.

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