Navistar megadeal paces $2.6 billion day, new Constellium busy; funds dive $1.2 billion

By Paul Deckelman

New York, Nov. 2 – The high-yield primary market saw its heaviest day of new issuance in a month on Thursday as nearly $2.6 billion of new paper came clattering down the chute.

The big deal of the day was truck, bus and engine manufacturer Navistar International Corp.’s quickly shopped $1.1 billion of eight-year notes.

There was also a trio of upsized deals that priced off the forward calendar.

Entegris Inc., a specialty chemicals producer, brought a $550 million issue of 8.25-year notes to market.

Dutch aluminum products maker Constellium NV priced $500 million and €400 million of 8.25-year notes in a two-part offering.

And residential lender Freedom Mortgage Corp. came in with a $435 million eight-year transaction.

In the secondary realm, traders said that the new Constellium dollar-denominated notes were among the busiest credits of the day in Junkbondland, moving up solidly after pricing at par.

Away from the new deals, Alliance One International’s bonds and shares jumped after the tobacco company reported strong quarterly numbers.

Statistical market performance measures fell across the board on Thursday after having been mixed over the previous four sessions.

And another indicator – flows of investor cash into or out of high-yield mutual funds and exchange-traded funds – sank deeply into the red this week as $1.2 billion left those funds.

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