Acadia prices upsized add-on; Frontier’s new issues all the rage; steel, oil bonds in retreat

By Paul A. Harris and Stephanie N. Rotondo

Portland, Ore., Sept. 14 – The high-yield bond market was slightly weaker on Monday, trending in line with equities as Rosh Hashanah kept players from their desks.

Additionally, investors were keeping an eye towards the Federal Reserve’s policy meeting later this week. Speculation had been that the two-day meeting, which begins on Wednesday, will result in the first interest rate increase since 2008. However, with the recent volatility in the markets, chatter has grown that the raise could be put off or could be less than expected.

As for the day’s high-yield dealings, the primary market did see one deal get done, a $275 million add-on of 5 5/8% notes due 2023 from Acadia Healthcare Co. Inc., which priced at 100.5 to yield 5.515%.

The deal size was increased from $250 million.

The reoffer price came on top of price talk.

BofA Merrill Lynch and Jefferies LLC were the joint bookrunners.

Most of the day’s secondary activity, however, centered on Frontier Communications Corp.’s $6.6 billion three-tranche deal from Friday.

“The activity was dominated by Frontier,” one trader said.

Away from new and recent deals, the steel sector remained under pressure as the space awaits a ruling on potential import duties from the U.S. International Trade Commission.

The energy arena was also trending toward the softer side on Monday as domestic crude oil prices declined by 1.19%.

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