Novalex prices; Team Health ahead; Valeant down; other pharma companies follow; E&P mixed

By Colin Hanner and Paul A. Harris

Chicago, Jan. 11 – Novolex Holdings, Inc. priced Wednesday's sole offering in the high-yield primary market, a $625 million issue of 6 7/8% eight-year senior notes.

Team Health Holdings, Inc. downsized its offering of eight-year senior notes to $865 million as proceeds were shifted to a bank loan. The notes are talked to yield 6½% to 6¾% and are set to price Thursday.

In the high-yield secondary market, activity on Wednesday played to a similar tune it had a day prior as trading continued to swirl around one of the most actively traded pharmaceutical names.

After announcing $2.1 billion worth of asset sales on Tuesday, Valeant Pharmaceuticals International, Inc. swung downward Wednesday after posting several gains across its securities during the previous session.

“Valeant took a little breather. Bonds started trading off their recent highs,” a trader said. “There was lots of activity.”

A trader said the notes were dipping on post-asset sale news but also mentioned that president-elect Donald Trump’s comments during a press conference also had a factor in the movement.

Other pharmaceutical companies felt the effects of the Trump press conference, though not as actively as Valeant, a trader said.

In exploration and production, several names did not respond to the rising price of oil on the session. California Resources Corp. and Range Resources Corp. remained unchanged. Meanwhile, Chesapeake Energy Corp. was down.

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