Dollar primary quiets down after huge session; Telesat slates; Tutor Perini spikes deal

By Paul Deckelman

New York, Nov. 2 – The high-yield market took a step backward – and a breather – on Wednesday, after having seen one of its heaviest new-issuance days in many weeks on Tuesday.

No new dollar-denominated and fully junk-rated issues from domestic or industrialized-country borrowers came to market during the session. That was in sharp contrast to Tuesday, when five issuers combined to price $3.49 billion in seven tranches, the most new paper to get done in nearly two months.

The forward calendar built only modestly on Wednesday, with one new deal announced: Telesat Canada’s $750 million of eight-year notes.

In fact, the calendar lost an issue, as Tutor Perini Corp. announced that it was postponing its planned $500 million eight-year deal, which had been seen as a possible candidate for pricing on Wednesday.

Looking ahead to Thursday, ServiceMaster Global Holdings, Inc. is expected to price its $1 billion eight-year issue during the session.

In the secondary market, traders saw impressive volume in some of the issues that had priced during Tuesday’s big bond barrage, such as Lamb Weston Holdings, Inc., Jack Ohio Finance LLC, Precision Drilling Corp. and Codere SA.

However, all of those new deals were backpedaling from whatever gains they had notched in Tuesday’s post-pricing aftermarket dealings, in line with Wednesday’s generally lower market.

One exception to the overall negative trend, however, was Valeant Pharmaceuticals International Inc., whose bonds gained modestly on Wednesday.

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