Ultra Resources’ two-parter, Unisys, Alliance cap $6 billion week; Talen bonds retreat

By Paul Deckelman and Paul A. Harris

New York, April 7 – The high-yield primary sphere closed out the first trading week of April and the second quarter with a flourish on Friday, as a trio of issuers brought four tranches of new dollar-denominated and fully junk-rated paper to market totaling just over $2 billion.

Oil and natural gas operator Ultra Resources, Inc. priced $1.2 billion in two regularly scheduled tranches off the forward calendar – $700 million of five-year notes and $500 million of eight-year paper, which came at a discount to par. Both firmed by more than a point when they hit the aftermarket.

Information technology company Unisys Corp. did a $440 million five-year secured issue.

And coal producer Alliance Resource Partners, LP brought a downsized $400 million issue of eight-year notes to market.

The day’s new deals brought the week’s issuance total up to $6.13 billion.

Among recent transactions, traders said that Thursday’s issue from power generation company Talen Energy Supply, LLC – which already priced at a steep discount to par – moved even lower in active initial aftermarket dealings before coming off its lows but still ending below its issue price.

At the other end of the performance spectrum, industrial component manufacturer Park-Ohio Industries, Inc.’s 10-year issue continued to trade at a handsome premium to par.

Statistical market performance measures were mixed for a fourth straight session on Friday.

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