DAE megadeal prices, moves up; new Jefferies firmer; energy off, Rite Aid streak ends

By Paul Deckelman and Paul A. Harris

New York, July 21 – The high-yield primary market saw its biggest deal of the week – in fact, its largest deal since early June, as DAE Funding LLC did an upsized $2.3 billion three-part offering, consisting of three-year, five-year and seven-year notes.

Traders said that all three tranches of the scheduled forward calendar offering moved up when they went into the aftermarket.

Also among newly priced offerings, the traders saw Thursday’s seven-year deal from Jefferies Finance LLC firmer in Friday trading.

Other recent issues, such as AMC Networks, Inc. and Extraction Oil & Gas, Inc., were something of a mixed bag.

Away from the new issues, the traders said that oil and gas credits such as California Resources Corp., MEG Energy Corp. and EP Energy Corp. were all lower, in line with a sharp fall in crude oil prices.

And Rite Aid Corp.’s three-session winning streak – spurred by the release of pro forma financial data related to the company’s upcoming sale of almost half of its drugstores – fizzled out on Friday.

Statistical market performance measures turned mixed on Friday after being firmer across the board for the previous two sessions.

However, the indicators were stronger all around versus where they had finished out last Friday, July 14, their second consecutive week-over-week gain, following a lower week ended July 7.

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