Airxcel, Ferrellgas add-on price, Atotech, Hexion deals on tap; Sabine Pass stays busy

By Paul Deckelman and Paul A. Harris

New York, Jan. 24 – The high yield primary market continued to move along in a relatively relaxed groove for a second straight session on Tuesday, with syndicate sources again seeing only a modest amount of new paper coming down the chute, after several very busy sessions last week.

Airxcel, Inc., a maker of heating and cooling equipment for the industrial and recreational vehicle markets, priced a slightly upsized $310 million offering of five-year secured notes as a regularly scheduled forward calendar deal.

Meanwhile, propane distributor Ferrellgas Partners, LP did an upsized $175 million add-on to its 2020 notes, also as a regularly scheduled deal.

Both issues were quoted higher in the aftermarket, though on no great volume.

Tuesday’s $468 million of proceeds in two tranches follows the $775 million which got done in three deals on Monday – in contrast to multi-billion-dollar primaryside sessions on Tuesday, Thursday and Friday of last week.

Looking ahead, the syndicate sources are seeing possible pricings Wednesday from Atotech BV, a German manufacturer of plating chemicals and equipment, and from domestic specialty chemical maker Hexion Inc.

Away from the new-deal arena, secondary traders noted the continued heavy trading in natural gas company Sabine Pass Liquefaction LLC’s bonds following a recent ratings upgrade.

And they saw continued gyrations in the paper of retailer Neiman-Marcus Group Inc.

Statistical market performance measures turned higher on Tuesday.

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