Mercer International prices, moves up; EP Energy on tap; forward calendar builds

By Paul Deckelman and Paul A. Harris

New York, Jan. 31 – Pricing activity resumed in the high yield market on Tuesday, which saw one transaction worth $225 million get done, a regularly scheduled seven-year deal from pulp producer Mercer International Inc.

Modest as it was, that deal – closing out a busy first month of the year – was a step up from Monday, when no U.S. dollar-denominated and fully junk-rated paper from domestic or industrialized-country-borrowers came to market.

Traders said the new Mercer bonds were solidly higher in brisk trading when they hit the aftermarket.

Primaryside syndicate sources meantime reported that oil and natural gas producer EP Energy LLC plans to price a $600 million offering of secured notes, possibly as early as Wednesday.

The news of that debt refinancing deal gave a boost to the company’s existing paper.

The forward calendar also saw a pair of other additions, with Harland Clarke Holdings Corp., a provider of media delivery, payment solutions and marketing services, and CURO Financial Technologies Corp., which provides financial services to unbanked customers, each beginning roadshows for new secured-paper deals.

Away from the new deals, there was continued erosion in Tempur Sealy International, Inc.’s notes, which also fell on Monday, after the mattress maker ended its contract with its largest distributor.

Statistical market performance measures moved lower across the board Tuesday, after having been mixed over three straight sessions before that. It was the indicators’ second lower session in the last seven trading days.

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