KCI prices, moves up; energy names battered as oil falls; Toys “R” Us trades up

By Paul Deckelman and Paul A. Harris

New York, Feb. 2 – After having taken two days off, the high yield primary market was back in business on Tuesday, as medical products manufacturer Kinetic Concepts Inc. priced a $400 million regularly scheduled forward calendar offering. Traders said the new bonds firmed in fairly busy aftermarket activity.

The traders also saw active dealings in last Thursday’s big two-part issue from Centene Corp.; however, unlike the past few sessions, this time, those bonds were seen having come off their previous peak levels.

Apart from those issues which have actually priced, syndicate sources said Acadia Healthcare Co. Inc. was getting ready to hit the road to market a $390 million bond issue this week.

Crude oil prices plunged for a second consecutive session, taking energy sector bonds such as Chesapeake Energy Corp., Energy Transfer Equity, LP, Energy XXI and California Resources Corp. down along with them.

On the upside, Toys “R” Us Inc.’s debt improved significantly after the company released higher expectations for its fiscal year and also said that it was working with advisers to deal with its capital structure.

Statistical measures of junk market performance were lower across the board for a second consecutive session on Tuesday. Those market gauges had fallen on Monday – their first lower session since Jan. 20 – after having pushed higher all around for a second straight session on Friday.

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