California Resources, Jupiter, W.R. Grace lead $8 billion session; funds lose $766 million

By Paul Deckelman and Paul A. Harris

New York, Sept. 11 – The high-yield primary market saw its heaviest new-issue session since April on Thursday. Syndicate sources reported that more than $8 billion of new dollar-denominated and fully junk-rated paper priced in nine tranches.

That was in stark contrast to the $900 million that got done on Wednesday, not to mention Tuesday’s $649 million and Monday’s $450 million. Each of those day’s action came in just a pair of tranches.

Thursday’s haul of new paper was the most seen in Junkbondland since April 23, when $11.25 billion came to market in five mostly giant-sized tranches, according to data compiled by Prospect News.

One issuer was responsible for fully $5 billion of Thursday’s total, California Resources Corp., which brought a three-part note offering to market late in the day.

There were two other big deals: Jupiter Resources Ltd.’s slightly downsized $1.1 billion eight-year offering and W.R. Grace & Co.-Conn.’s $1 billion two-parter.

The aftermarket saw heavy trading in Wednesday’s offerings from J.C. Penney & Co. Inc. and Ashtead Group.

Away from the new issues, RadioShack Corp.’s bonds gyrated around at mostly lower levels after the company reported poor quarterly numbers.

Statistical indicators of junk market performance turned lower on Thursday after having been mixed on Wednesday.

Another statistical gauge, the flow of funds in to and out of high-yield mutual funds and exchange-traded funds, was negative for a second straight week.

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