High yield rebounds as week begins; Valeant paper fades; Cablevision, Altice climb higher

By Paul A. Harris and Stephanie N. Rotondo

Portland, Ore., Oct. 5 – After weeks of being under pressure, the high-yield bond market rallied in Monday trading.

“Everything was up,” a trader said. “Up, up, up.”

One notable trend-bucker was Valeant Pharmaceuticals International Inc. Its 6 1/8% notes due 2025 were seen off 1˝ points at 96.

As for gainers, Cablevision Systems Corp.’s recently priced issues were moving up. The company priced $4.8 billion of notes in three tranches on Friday. Proceeds from that offering will be used to pay off existing debt and to fund a merger with Altice SA.

Both Cablevision and Altice saw their older debt also rising.

Also in the telecommunications space, Sprint Corp. “rebounded smartly,” according to a trader.

Bombardier Inc. was another name looking to climb higher during the session. Over the weekend, it was reported that the aircraft manufacturer was looking to Quebec’s public pension managers for a potential investment. Early Monday, Scotiabank put out a report that claimed the company could run out of cash by mid-2016.

In the primary, no deals were priced or announced during Monday's session, the sixth to pass without a dollar-denominated junk deal pricing.

There is just one deal on the active calendar, market sources say.

SunOpta Foods Inc. has been marketing a $330 million offering of senior secured second-lien notes due 2022 (B3/B) during the past week. The deal is set to price this week.

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