Beacon Roofing, Simmons Foods lead $2.25 billion primary day; Rite Aid, Toys tumble

By Paul Deckelman and Paul A. Harris

New York, Oct 11 – The high-yield primary scene saw yet another busy day on Wednesday as some $2.25 billion of new U.S. dollar-denominated and fully junk-rated paper priced in four tranches, syndicate sources said.

That matched the total of new-deal paper generated in two tranches on Tuesday, according to data compiled by Prospect News.

More than half of Wednesday’s new issuance came from Beacon Roofing Supply Inc., a maker of roofing materials, which priced $1.3 billion of eight-year notes. Traders saw those notes firm modestly when they hit the aftermarket.

Simmons Foods, Inc., a poultry processor and producer of pet foods, brought a $550 million seven-year secured deal to market, like Beacon as a regularly scheduled forward calendar offering. Also like Beacon, the new Simmons notes moved up a bit when they were cleared for secondary trading.

The day’s dealings also saw a pair of opportunistically timed quick-to-market offerings, as private corrections facilities operator Core Civic Inc. did a $250 million 10-year issue, while home builder MDC Holdings, LLC priced a $150 million add-on to its existing $350 million of January 2043 bonds.

Away from the new deals, Rite Aid Corp. bonds were on the slide for a second consecutive session.

Toys ‘R’ Us Inc. bonds fell, as auctions set the final settlement prices for credit default swaps linked to the bankrupt specialty retailer’s bonds and bank loan debt.

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