Navient add-on caps nearly $6 billion week; new HCA firms; Rite Aid slide continues

By Paul Deckelman and Paul A. Harris

New York, June 9 – The high-yield primary sphere – which began this week pricing one of the biggest bond deals ever – ended it on Friday by pricing one of the smallest, as loan servicing company Navient Corp. did a quickly shopped $52 million add-on to its existing 2021 notes.

That deal – which was not seen in Friday’s aftermarket – brought the week’s total of new U.S. dollar-denominated and fully junk-rated paper up to just under the $6 billion mark, around three times the volume of new debt last week, according to data compiled by Prospect News.

Traders saw active dealings at solidly firmer levels in the new HCA Inc. 30-year secured bonds, which priced on Thursday Even though the hospital operator’s megadeal was split-rated, they said a surprising number of junk investors were buying the paper.

The traders also said that aftermarket activity finally slackened off in HCA sector peer and competitor Tenet Healthcare Corp.’s huge new four-part offering, which priced on Monday and then had been actively traded all week.

Away from the new issues Valeant Pharmaceuticals International Inc.’s bonds remained well-bid-for over a second straight session on the news of an asset sale by the debt-laden Canadian drug manufacturer.

But drugstore chain operator Rite Aid Corp.’s securities were headed in the opposite direction for a second day following a report that indicated the Federal Trade Commission remains opposed to its planned merger with larger competitor Walgreen Boots Alliance.

© 2015 Prospect News.
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