Hexion, Radio One price; new issues in focus; Rite Aid firms; junk funds gain $315 million

By Paul A. Harris and Stephanie N. Rotondo

Portland, Ore., April 2 – New deals remained in focus in the high-yield bond market on Thursday, though traders noted that activity was leveling off early ahead of the long Good Friday weekend.

Hexion Inc. brought $315 million of 10% first-priority notes at par to yield 10%. The deal came at the wide end of talk.

Radio One Inc. priced $350 million of 7 3/8% senior secured notes due 2022. That issue came smack in the middle of talk.

Both issues ended up from their par issue prices.

Interval Leisure Group priced a $350 million issue of eight-year senior notes (Ba3/BB-) at par to yield 5 5/8%. The deal was upsized from $300 million.

Among slightly older issues, Rite Aid Corp.’s 6 1/8% notes due 2023 were firming up yet again, according to traders. The gains came as the company released its same-store sales report.

In the commodity space, iron ore producers continued to get hit as fears of declining prices and oversupply grew.

The bond market will close at noon ET on Friday for the holiday.

Dedicated high-yield funds saw $315 million of inflows for the week to Wednesday, according to market sources who were citing a weekly report from Lipper-AMG.

However, the cash went entirely to exchange-traded funds, which saw $318 million of inflows, while actively managed funds actually sustained $3 million of outflows during the period, sources said.

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