Lennar drives by with upsized deal; retail issues rocked by Macy’s move; funds up $734 million

By Paul Deckelman and Paul A. Harris

New York, Jan. 5 – The high-yield market saw its second quickly-shopped new issue price in as many days on Thursday, as homebuilder Lennar Corp. brought in an upsized $600 million of five-year notes.

That transaction followed Wednesday’s pricing of the first new deal of the year, a quick-to-market $200 million add-on to cement products producer U.S. Concrete Inc.’s existing June 2024 bonds.

Traders said the new Lennar paper was trading slightly above its issue price, though volume in the credit was light.

Away from the new deals, retailing sector names such as Neiman-Marcus Group Ltd. and L Brands Inc. remained under pressure in the wake of negative news coming from sector peers such as investment-grade department store behemoth Macy’s Inc. and the underperforming junker Sears Holding Corp., both of which announced the closing of dozens of stores. Sears’ own bonds, however, did not see much activity.

Elsewhere, hospital operator Community Health Systems Inc.’s bonds were up by multiple points in active trading in the wake of this week’s announcement that it had completed the sale of a majority interest in its Home Health division, with the $128 million of proceeds slated for debt reduction.

High-yield mutual funds and exchange-traded opened 2017 on a positive note on Thursday, reporting a $734 million net inflow for the reporting week ended Wednesday.

© 2015 Prospect News.
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