Tullow, Husky lead busy primary; Mattel trades on Toys shutdown; Teva still trades under par

By James McCandless and Paul A. Harris

San Antonio, March 16 – An active primary session Friday wrapped up the biggest week for dollar-denominated high-yield issuance of the year so far.

Tullow Oil plc priced an upsized $800 million issue of seven-year senior notes at the tight end of talk in a deal that drew both high-yield and emerging markets buyers.

On the other hand, Husky Injection Molding Systems priced a downsized $650 million issue of eight-year senior notes at the wide end of talk that had already moved out from initial guidance.

Also pricing during the session were Parkland Fuel Corp. and Iridium Communications Inc. along with the day’s single drive-by, a deal from Prestige Brands, Inc.

Against that backdrop, the high-yield secondary market capped the week Friday with newer issues dominating, traders confirmed.

Mattel, Inc.’s latest issue was in focus – but gained ground even as major buyer Toys “R” Us, Inc. began the liquidation process and a rating agency gave it a downgrade.

A newer issue from Teva Pharmaceutical Industries Ltd. has become somewhat of an enigma in secondary trading, consistently trading under par.

Valeant Pharmaceuticals International, Inc added to the day’s volume with its recent eight-year senior unsecured notes.

Sprint Corp. and its recent $1 billion pricing has consistently seen heavy trading. On Friday the bonds were lower.

Telecom favorites Frontier Communications Corp. and Intelsat SA added to the day’s volume.

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