Downsized West, upsized Energy Transfer and PBF add-on price; existing Valeants fall

By Paul Deckelman and Paul A. Harris

New York, Oct 3 – The high-yield primary sphere saw its second consecutive $2 billion-plus session for the week and the new month of October so far on Tuesday, and its third straight $2 billion day overall counting last Friday, as a trio of issuers each brought a single tranche of new U.S. dollar-denominated and fully junk-rated paper to market.

West Corp., a provider of communications and network infrastructure services, had the day’s sole downsized issue – but still the big deal of the day, – with a regularly scheduled $1.15 billion forward calendar offering of eight-year senior notes.

Traders quoted the new West paper as having firmed modestly when it hit the aftermarket.

Midstream operator Energy Transfer Equity, LP, did $1 billion of 5.5-year senior secured notes, while pipeline and terminal services provider PBF Logistics priced a $175 million add-on to its existing $250 million of May 2023 notes.

Traders did not immediately report any initial aftermarket activity in either of the latter two credits.

They meantime saw continued brisk activity in Monday’s three new issues, from CrownRock LP, Valeant Pharmaceuticals International, Inc. and Scientific Games Corp., as well as Friday’s big new deal from Caesars Entertainment Corp.

While the new Valeant secured notes continued to trade well, the Canadian drug manufacturer’s existing unsecured bonds – subordinate to the new paper in its capital structure – were in retreat, on active volume.

© 2015 Prospect News.
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