Downsized Harland Clarke, Unifrax drive-by add-ons price amid generally dull day for market

By Paul Deckelman and Paul A. Harris

New York, July 28 – The new week opened in Junkbondland on a generally quiet note, traders said, with only two dollar-denominated deals heard by high-yield syndicate sources to have come to market – both of them smallish drive-by add-on transactions, downsized even further before pricing.

Harland Clarke Holdings Corp., a San Antonio, Texas-based producer of checks, ATM, debit and credit cards, came to market with a $175 million add-on to its existing 2021 notes.

Unifrax I LLC, a Niagara Falls, N.Y.-based supplier of high-temperature insulation products to the construction industry, priced a $45 million of its existing 2019 bonds.

Both deals came to market fairly late in the session and were not seen in the aftermarket, although one trader noted that the transactions’ small sizes made them unlikely secondary trading candidates.

The day’s $223 million in two tranches was down from Friday’s $300 million of issuance, all of which came from just one deal, Hamilton, Bermuda-based oil and gas exploration and production operator Kosmos Energy Ltd. Nobody saw any dealings in that issue either.

In fact, activity was generally muted, even in such recent junk deals as Alliance Data Systems Corp. and Clearwater Paper Corp.

But there was some activity in a few recent issues, such as those from Micron Technology, Inc. and Regency Energy Partners, LP.

Statistical market performance indicators were down across the board for a second consecutive session Monday.

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