Giant Dell plus drive-by DISH, Cheniere megadeals price; new bonds up in active trading

By Paul Deckelman and Paul A. Harris

New York, June 8 – The high-yield primary market pulled out all of the stops on Wednesday, producing one of the biggest-volume new-deal days of the year so far.

By the time the dust had settled, $6.75 billion of new dollar-denominated and fully junk-rated paper had come to market in four tranches. It is the second-heaviest new-deal volume seen so far this year in Junkbondland.

The big deal of the day was the $3.25 billion two-part offering of five- and eight-year notes from Dell Inc. – the third-largest high-yield deal to price so far this year, according to the data.

Those bonds were seen by traders to have firmed smartly when they hit the aftermarket.

Dell’s deal was a regularly scheduled transaction off the forward calendar. There was also a pair of drive-by megadeals, DISH Network Corp.’s sharply upsized $2 billion of 10-year notes and Cheniere Energy Partners LP’s upsized $1.5 billion of 10-year secured paper.

The Cheniere bonds traded modestly higher in the secondary.

Traders did not immediately report any dealings in the new DISH paper, which priced late in the day, but they said the company’s existing bonds were all lower.

There was also busy trading in the issues that had priced on Tuesday from Gray Television, Inc., Zekelman Industries and Six Flags Entertainment Corp.

Statistical market performance measures were higher for a fourth consecutive session on Wednesday.

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