Medical Properties brings upsized deal; Freeport-McMoRan continues to rise; ADT active

By Paul Deckelman and Paul A. Harris

New York, Feb. 17 – A split-rated crossover deal that attracted interest from both high-yield and high-grade investors dominated news in the junk bond primary arena on Wednesday, traders said. Medical Properties Trust, Inc. did a quickly shopped, upsized $500 million issue of eight-year notes.

After the issue priced, traders saw the bonds doing better in the aftermarket in very busy dealings.

Tuesday’s new deal from Prestige Brands Holdings, Inc. continued to firm, also on active volume.

Away from the new-issue sphere, traders said that the overall market was higher pretty much all around.

Split-rated Freeport-McMoRan Inc.’s paper dominated the Most Actives list, continuing to rise in the wake of news of a planned asset sale.

Whiting Petroleum Corp.’s bonds continued to rebound after having gotten hammered down on Friday on a huge ratings cut by Moody’s Investors Service.

Also seen on the rebound were Community Health Systems, Inc.’s bonds, which had fallen off on Tuesday after the hospital operator reported disappointing fourth-quarter results and said that it would delay the planned spinoff of its rural hospital holdings until the end of the year, citing unfavorable debt market conditions.

ADT Corp.’s bonds were busy, though at mixed levels, as junk players continued to react to Tuesday’s announcement that the alarm service company is to be bought out.

Statistical measures of junk market performance were higher across the board for a third consecutive session on Wednesday.

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