Tenneco drives by, gains in trading; Yum!, other recent issues gain; energy up

By Paul Deckelman and Paul A. Harris

New York, June 6 – The high yield primary sphere opened the new week on Monday – the first full trading week in June – with one quickly shopped and well-executed offering of $500 million of 10-year notes from automotive components manufacturer Tenneco Inc.

Traders said that the new bonds were actively traded at higher levels when they hit the aftermarket.

Syndicate sources meantime reported two issues in the market for likely pricing this week, from computer maker Dell Inc. – which recently did a huge multi-tranche investment-grade-rated deal as part of the funding for an acquisition it is making – and from steel pipe and tubing manufacturer Zekelman Industries, Inc., the latter offering a secured deal that could get done as soon as Tuesday.

Among recently priced offerings, last week’s megadeal from fast-food giant Yum! Brands, Inc. was still whetting appetites in Junkbondland, with active trading at higher levels on both halves of that big deal.

Traders were also reporting brisk activity, at better levels, for such other recent offerings as those from real estate services firm Realogy Holdings Corp., and from nitrogen fertilizer manufacturer CVR Partners, LP.

Away from the new or recently priced issues, a jump in world crude oil prices was seen fueling gains in such familiar energy names as Chesapeake Energy Corp., California Resources Corp. and Sanchez Energy Corp.

Statistical market performance measures were higher for a second consecutive session on Monday, their fourth stronger session out of the last 10.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.