Upsized Dynegy deal drives by; Concordia on tap; Peabody Energy, other coal names gain

By Paul Deckelman and Paul A. Harris

New York, Oct. 5 – After several days of relative inactivity, the high-yield primary sphere got back into the pricing business on Wednesday, as power generating company Dynegy Inc. brought a quickly shopped and upsized $750 million offering of 10.25-year notes to market.

It was the first junk-rated, dollar-denominated paper to price since Friday, when Quality Care Properties Inc. and Vertiv each did a $750 million deal.

Syndicate sources said Canadian pharmaceutical company Concordia International Corp. is expected to price a $350 million offering of 5.5-year secured notes during Thursday’s session. The company’s existing paper was up solidly.

Traders did not see very much activity Wednesday among recently priced issues, with the exception of some of Alcoa Inc.’s new paper and Cheniere Energy Partners, LP.

Away from the recent deals, the traders saw considerable activity in coal names such as Peabody Energy Corp., whose beleaguered bonds firmed smartly, and Murray Energy Corp., also on the upside for the day.

Statistical market performance measures turned higher across the board on Wednesday, after having been mixed on Monday and again on Tuesday. It was the second upside session for the indicators in the last four trading days.

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