Upsized GFL five-year notes price, recent deals firm; Sprint jumps; energy muted despite crude surge

By Paul Deckelman and Paul A. Harris

New York, Jan. 26 – Primaryside players kept the ball rolling on Tuesday, with the high yield market seeing its fourth new deal in as many sessions.

Canadian waste management company GFL Environmental Corp. came to market with an upsized $300 million offering of five-year notes, a day after that prospective new-deal first surfaced in the market.

Traders meantime saw recently priced issues continuing to move around at firmer levels, with particular activity in Monday’s offering from Lamar Advertising Co. and in Thursday’s bond deal from TreeHouse Foods, Inc.

Friday’s bond issue from GCP Applied Technologies, Inc. moved up, but on greatly reduced volume versus Monday’s busy session.

Away from the new or recently priced issues, traders said that Sprint Corp.’s various bond issues firmed smartly across the wireless communications company’s capital structure after it posted a narrower fiscal third-quarter loss versus a year earlier and raised its full-year guidance, and also reported ample liquidity to address all of its near-term debt maturities.

Oil prices surged on investor hopes of possible output cuts – but that did not produce any great corresponding rise in energy bonds. While Energy Transfer Equity, LP and Memorial Production Partners, LP’s notes gained, Chesapeake Energy Corp. was off on the day.

Statistical measures of junk market performance turned higher across the board on Tuesday after having been mixed on Monday. It was their third higher session in the last four trading days.

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