Owens-Illinois, Infor lead primary; new Infor up; oil slide drags overall market lower

By Paul Deckelman and Paul A. Harris

New York, Aug. 11 – The high-yield primary sphere continued to churn out new deals at brisk pace on Tuesday despite a negative overall market tone in Junkbondland egged on by falling equities, sliding oil prices and concern about the devaluation of China’s yuan and what that might do to the global economy.

Three new deals came to market in four tranches, generating $1.8 billion of new dollar-denominated and fully junk-rated paper.

Owens-Illinois, Inc. priced a quickly shopped $1 billion two-part issue consisting of $700 million of eight-year notes and $300 million of 10-year paper.

Infor (US), Inc. came to market with an upsized $500 million of five-year secured notes. Traders saw that new deal – the only one of the day’s offerings to actually generate meaningful aftermarket activity – having moved up about a point from its discounted issue price.

Midcontinent Communications had the day’s sole regularly scheduled pricing off the forward calendar, a $300 million eight-year issue.

There was brisk trading in Monday’s new deals from MSCI Inc. and Service Corp. International.

Away from the new deals, oil and natural gas credits such as Chesapeake Energy Corp. and California Resources Corp. were once again getting whacked around in the wake of falling oil prices.

Statistical measures of junk market performance turned mixed lower across the board on Tuesday after having been mixed on Monday. It was the third such loss in the last four sessions.

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