Primary stays quiet, Telesat Canada downsizes, CF deal seen high-grade; Valeant, Hertz dip

By Paul Deckelman and Paul A. Harris

New York, Nov. 8 – The high yield market again stayed quiet on the pricing front on Tuesday, and participants awaited the outcome of the presidential and other elections in the United States.

Primaryside players, though, heard that Telesat Canada had downsized its formerly $750 million of eight-year notes to $500 million, shifting the difference to a concurrent term loan deal the communications satellite company is also doing.

And those sources also said that the pending big deal for CF Industries will now be run off the investment-grade desks – but that two-part, $1.25 billion secured note offering continues to attract considerable interest from investors in Junkbondland.

Among recently priced deals, Lamb Weston Holdings Inc. was seen among the busiest credits and holding onto its recent gains.

Away from the new deals, Valeant Pharmaceuticals International, Inc.’s bonds and those of Hertz Global Holdings, Inc. were both sharply lower in very busy trading, after the drug manufacturer and the car-rental company reported bad third-quarter numbers and reduced guidance.

Statistical market performance measures turned mixed on Tuesday after having been higher across the board on Monday for only the second time in the last 11 sessions. It was the third mixed session in the last four trading days.

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