Downsized ServiceMaster prices, also Associated Materials, Kissner; funds dive by $4 billion-plus

By Paul Deckelman

New York, Nov. 3 – After a one-day hiatus, pricing activity returned to the domestic high-yield arena on Thursday, syndicate sources said, as a trio of issuers brought $1.83 billion of new U.S. dollar-denominated and fully junk-rated paper to market during the session.

The big deal of the day Thursday came from cleaning and maintenance services provider ServiceMaster Global Holdings Inc. – although that $750 million issue of eight-year notes was not as big as it could have been since the company elected to shift some of what had originally been a $1 billion bond deal into its concurrent term loan financing.

Associated Materials Group Inc. priced $675 million of 7.25-year notes in a deal that largely came in under most market players’ radar screens.

Canadian rock salt producer Kissner Holdings LP brought a $400 million issue of six-year secured paper to market.

Away from the new deals, Valeant Pharmaceuticals International Inc.’s bonds, on a roll over the past two days, seemed to settle back down, buffeted by some negative headlines.

Statistical market performance measures turned mixed on Thursday after being lower across the board for six consecutive sessions.

High-yield mutual funds and exchange-traded funds – considered a reliable barometer of overall junk market liquidity trends – nosedived deep into the red this week, recording their fourth consecutive net outflow, as $4.116 billion more left those weekly reporting domestic funds in the form of investor redemptions than came into them during the reporting week ended Wednesday.

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