International Wire deal prices, calendar keeps building; market stronger, Claire’s dives

By Paul Deckelman and Paul A. Harris

New York, July 12 – The high yield primary sphere saw its first pricing of the week on Tuesday – and only the second so far this month – as International Wire Group, Inc. priced $260 million of five-year senior secured notes, at a deep discount from par.

Traders did not immediately report any initial aftermarket activity in the electrical wire products maker’s new issue.

They did see continued busy activity in the only other new deal to price so far in July – Transocean, Ltd.’s seven-year issue, which came to market this past Thursday. The Swiss deep-water drilling company’s megadeal continues to firm from its own sizable discounted pricing level.

Away from the issues that have already come to market, syndicate sources heard a pair of offerings being shopped around to prospective investors.

Specialty chemicals and motor oil manufacturer Valvoline, Inc. plans to sell $375 million of eight-year notes to help fund its coming spinoff from chemical maker Ashland Inc.

Holly Energy Partners, LP, a petroleum pipeline operator, hopes to complete a $300 million eight-year offering.

Both of those deals are expected to price later in the week.

Among established issues, traders said that the overall junk bond market was strong, in tandem with stocks and oil prices, both of which notched hefty gains on Tuesday.

However, Claire’s Stores Inc.’s notes nosedived in busy dealings after the specialty retailer released bearish second-quarter EBITDA and sales projections.

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