Allegiant prices upsized add-on; Hudbay megadeal on tap; oil names jump on OPEC deal news

By Paul Deckelman and Paul A. Harris

New York, Nov. 30 – The high-yield primary market closed out the month of November on Wednesday on a relatively quiet note. There was just one smallish add-on deal seen having priced, low-cost airline operator Allegiant Travel Co.’s $150 million tap of its existing 2019 notes.

That was in contrast to Tuesday, when $1.78 billion of new dollar-denominated, fully junk-rated paper from domestic or industrialized-country borrowers got done.

Two of those Tuesday deals – from Tesoro Logistics LP and Steel Dynamics, Inc. – were among Wednesday’s busiest issues, both up from where they had priced.

There was less activity seen in Tuesday’s other new issue, from Transocean Ltd., but that too moved up from its issue price.

Tuesday’s split-rated deal from Constellation Brands, Inc. topped the Most Actives list but struggled price-wise.

Away from the deals that have actually priced, syndicate sources said that timing on Hudbay Minerals Inc.’s $1 billion two-part issue had moved up, with a Thursday pricing now seen likely.

Apart from the new issues, traders said that energy-sector names such as California Resources Corp., Denbury Resources Inc. and Whiting Petroleum Corp. shot up in line with a sharp rise in crude oil prices on news that OPEC ministers plus non-OPEC producer Russia had agreed to cut output to support prices.

Statistical market performance measures turned higher on Wednesday after having been lower across the board on Tuesday and mixed on Monday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.