Upsized HCA megadeal drives by, bonds rise; new Solera strong; Valeant rebounds

By Paul Deckelman and Paul A. Harris

New York, March 1 – The high yield market began March on a robust note on Tuesday, riding the momentum seen at the end of February in both the primary and secondary spheres.

The new-deal arena saw giant hospital operator HCA Holdings, Inc. do an upsized, quick-to-market $1.5 billion offering of 10-year secured notes via a subsidiary. When those new notes were freed for aftermarket activity, traders saw them firm solidly on heavy volume.

The primary also saw a euro-denominated offering from German industrial conglomerate ThyssenKrupp AG.

In the secondary realm, traders saw mostly firmer levels and brisk trading in many issues.

In addition to the strength in the new HCA notes, traders saw gains in Solera, LLC’s new eight-year notes, which priced on Monday at a big discount to par after having been delayed, resized and restructured.

Away from new issues, Valeant Pharmaceuticals International Inc.’s bonds – which nosedived on Monday on news of a Securities and Exchange Commission probe of the Canadian drug manufacturer – were seen on the rebound on Tuesday, in busy trading.

On the other hand, Intelsat SA’s paper – which also fell on Monday – continued to lose altitude on Tuesday after Standard & Poor’s lowered its ratings on the communications satellite company, a day after a similar downgrade by Moody’s Investors Service.

Statistical market performance measures were higher across the board for a fourth consecutive session on Tuesday; they had also been up on Thursday, Friday and again on Monday.

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