Upsized SBA, Jonah deals price, gain; Rite Aid retreats; funds add $433 million

By Paul Deckelman and Paul A. Harris

New York, Sept. 28 – The high-yield primary arena saw a pair of upsized new issues on Thursday totaling $1.35 billion – off a little from the $1.53 billion of new dollar-denominated and fully junk-rated paper which had gotten done in four tranches during Wednesday’s session.

Wireless communications infrastructure facilities provider SBA Communications Corp. did a quickly shopped $750 million of five-year notes while oil and natural gas producer Jonah Energy LLC priced a $600 million eight-year forward calendar offering.

Secondary market participants saw the new Jonah issue gain nearly 1 point in active aftermarket trading and they also quoted the new SBA issue higher.

They also saw brisk activity in such recently priced credits as United Continental Holdings, Inc., Chesapeake Energy Corp., Beazer Homes USA, Inc. and Pilgrim’s Pride Corp.

Away from the new issues, Rite Aid Corp.’s bonds and shares fell after the drugstore operator reported disappointing fiscal second-quarter results.

Bombardier, Inc.’s bonds – which had slid badly in active dealings on Wednesday after Washington imposed a hefty tariff on the Canadian aircraft manufacturer’s planes – rebounded a little.

Statistical market performance measures improved on Thursday after turning mixed on Wednesday.

Another numerical indicator – flows of investor cash into or out of high-yield mutual funds and exchange-traded funds – was in positive territory for a second week as $433 million more came into those weekly-reporting-only domestic funds.

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