Vivint leads $2.4 billion day; junk softens post-election; coal drops on vote, James River

By Paul A. Harris and Stephanie N. Rotondo

Phoenix, Nov. 7 - High-yield primary market news volume remained intense on post-Election Day Wednesday. Four issuers brought a combined five tranches of dollar-denominated junk, raising a total of $2.4 billion

In the secondary, a trader said the market was "heavier" post-Election Day, though it was "nothing bone crushing."

The coal arena, however, got trampled, due in part to the belief that the re-election of president Barack Obama would be bad for the industry and in part to dismal earnings from James River Coal Co.

Meanwhile, ArcelorMittal paper "bounced back a little bit," a trader said. The bonds had declined in the previous session after being downgraded into junk territory by Moody's Investors Service.

In earnings news, Leap Wireless International Inc. was trading actively but unchanged after it posted quarterly results. Quicksilver Resources Inc. also reported and its debt put on a few points in response.

Vivint prices two-part deal

Vivint, Inc. priced the day's biggest new offering, $1.305 billion of high-yield notes in two tranches.

The deal included a $925 million tranche of seven-year senior secured notes (B1/B) which priced at par to yield 6 3/8%. The yield printed in the middle of the 6¼% to 6½% yield talk.

In addition Vivint priced a $380 million tranche of eight-year senior unsecured notes (Caa1/CCC+) at par to yield 8¾%. On the unsecured notes the yield came at the wide end of the 8½% to 8¾% yield talk.

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