York Risk brings add-on, Lennar seen on tap; busy trading in new Navient megadeal; oils off

By Paul Deckelman and Paul a. Harris

New York, Nov. 4 – The pace of primary activity in the high-yield market lessened drastically on Tuesday.

Market sources heard of only one pricing, a smallish add-on brought by York Risk Services Holding Corp. to the issue that it sold last month.

That held the day’s tally of new dollar-denominated, fully junk-rated paper from domestic or industrialized-nation issuers to just $45 million, versus the $1.3 billion that came to market on Monday.

Besides that sole pricing, there was a lessened pace as well in the forward calendar, with only Lennar Corp. joining the pipeline, its $350 million five-year offering expected to price Wednesday.

And price talk emerged on MSCI Inc.’s 10-year offering, with pricing also expected Wednesday.

Among the issues that have already priced, traders saw both tranches of Tuesday’s two-part Navient Corp. megadeal trading actively at levels around their respective discount issue prices.

Charter Communications, Inc., Media General Inc. and K. Hovnanian Enterprises, Inc.’s recent issues also saw brisk trading volumes.

That was also the case for the several tranches that California Resources Corp. priced in September; those CalRes bonds were seen sharply lower in active trading in apparent reaction to a renewed slide in oil prices.

Existing bonds of other high-yield energy-space names also traded off in active dealings as the whole oil-and-gas sector retreated.

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