AMC, Constellium lead $1 billion-plus day in primary; energy, commodities lead junk lower

By Paul A. Harris and Stephanie N. Rotondo

Portland, Ore., March 23 – AMC Networks Inc., Constellium NV and iStar Financial Inc. priced single-tranche deals on Wednesday, raising a combined total of $1.7 billion.

It was the third session in a row that the dollar-denominated new issue market topped the $1 billion mark.

All three deals were upsized, and two of the three came as drive-by deals.

Executions were tight, with two of the deals coming at the tight end of price talk and the third on top of talk.

However, at least two of Wednesday's new issues eased in the secondary against a backdrop of overall weakness in the junk market, a trader said.

The downward trend was due in part to a decline in energy names, which came in as domestic crude prices declined about 4% for the day, falling below the $40-per-barrel mark.

In response, Denbury Resources Inc.’s 6 5/8% notes due 2021 weakened by 2½ points to 49½ bid, according to a market source.

Range Resources Corp.’s 5% notes due 2023 were also lower, falling 1½ points to 87 bid.

And, Chesapeake Energy Corp.’s 6 5/8% notes due 2020 dipped a point to 44.

But oil wasn’t the only commodity feeling the pressure on Wednesday. Other commodities, such as steel, were also drifting lower as the dollar gained.

A source pegged AK Steel Holdings Corp.’s 7 5/8% notes due 2020 at 62½ bid, off a point.

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