Iron Mountain, Beacon Roofing price, firm despite market sell-off; funds gain $17.7 million

By Paul Deckelman and Paul A. Harris

New York, Sept. 24 – The high-yield market, in the words of one trader, was “down hard again” on Thursday.

But that volatility did not stop a pair of issuers from bringing a total of $1.3 billion of new dollar-denominated, fully junk-rated paper to market during the session – including one pretty big transaction.

Iron Mountain, Inc. priced $1 billion of five-year notes in an upsized, quick-to-market offering. Traders saw those new notes up nearly a point in aftermarket dealings.

They also said that Beacon Roofing Supply Inc. brought a regularly scheduled $300 million issue of eight-year paper to market. Those bonds, too, were quoted higher Thursday.

There was brisk trading in Building Materials Corp. of America and, of course, in the recently priced bonds from Frontier Communications Corp., the latter credits continuing to slide.

High-yield syndicate sources said that Cablevision Systems Corp.’s big new deal, which could get done during Friday’s session, was downsized by $1 billion to $5.3 billion, with the $1 billion shifted to its concurrent term loan.

Statistical measures of junk market performance were seen lower across the board for a third consecutive session on Thursday.

But another indicator – flows of investor cash into and out of high-yield mutual funds and exchange-traded funds, considered a reliable barometer of overall junk market liquidity trends – showed a third straight week of net additions by investors in the latest reporting week.

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