Caesars prices $1.7 billion, gains in trading; Jonah stays firm; Valeant up on asset sale

By Paul A. Harris and Stephanie N. Rotondo

Seattle, Sept. 29 – It was quite a day in the high-yield bond market on Friday, despite it being the last day of the month and the third quarter.

In the primary, Caesars Entertainment Corp. brought $1.7 billion of eight-year 5¼% notes. A trader said there were “tons of trades” in the new issue, which closed the day above par.

Also pricing Friday was a $300 million issue of seven-year senior notes from FLY Leasing Ltd.

The two deals wrapped a month which saw $33.82 billion of new paper, defying some expectationsfor a sparse primary.

Meanwhile from Thursday’s business, Jonah Energy LLC’s $600 million of 7¼% notes due 2025 also saw “heavy volume” Friday, according to a trader.

That issue continued to trade above par.

As for secondary dealings, Valeant Pharmaceuticals International Inc.’s debt was getting a boost after the company announced it had sold its iNova Pharmaceuticals business.

Proceeds from the asset sale will be used to pay down debt.

Overall, the market had a firm tone as the month wound down.

The KDP High Yield Index firmed to 72.37 from 72.35 previously. The yield tightened to 5.13% from 5.17%.

The CDX North American Series 28 Index was a touch higher at 107.475 bid, 107.555 offered.

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