Constellium dollar notes price to cap $3.33 billion week, seen firmer; energy a mixed bag

By Paul Deckelman and Paul A. Harris

New York, Dec. 5 – The junk bond market closed out the first trading week of the final month of the year on Friday with one deal worth $400 million having priced, high-yield syndicate sources said.

Dutch aluminum products manufacturer Constellium NV came to market with an upsized dual-currency deal that included tranches of dollar- and euro-denominated eight-year notes. Traders quoted the new dollar notes a little above their issue price.

That transaction brought the week’s total of new junk-rated, dollar-denominated paper from domestic or industrialized-country borrowers to $3.33 billion in nine tranches, according to data compiled by Prospect News. That was up from the roughly $2.3 billion that priced in four tranches during the Thanksgiving holiday-shortened week before, ended Friday November 28.

The latest week’s issuance meanwhile raised the year-to-date total of new paper to $310.18 billion in 579 tranches – up from the $307.7 billion of bonds sold in 645 tranches by this time on the calendar last year. However, statistically speaking, the two cumulative figures were essentially a wash, separated by less than one full percentage point.

Away from the new deals, oil and natural gas names like Halcon Resources Corp. were the main features in the market, with that company’s paper seen having firmed despite continued oil-price deterioration. Other sector names, however, were lower.

© 2015 Prospect News.
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