Cequel drives by with $1.05 billion; Mattel, First Quantum trade; funds lose $1.17 billion

By James McCandless and Paul A. Harris

San Antonio, March 21 – Cequel Communications Holdings I, LLC broke the week’s drought for dollar-denominated issuance with a quickly marketed sale of $1.05 billion of 10-year senior notes.

But the transaction came wider than initial talk as volatility in the broader markets provided an unhelpful backdrop.

As has been the case for most of the week, the European high-yield arena was busier than its U.S. counterpart.

Meanwhile traders reported a light day in the high-yield secondary market as activity focused on news-driven newer issues.

Mattel, Inc. notes became active again after downward pressure last week caused by the news that Toys ‘R’ Us will liquidate.

First Quantum Minerals Ltd. saw its newer issues trade heavily again. On Wednesday, the company announced that it would dispute a $7.9 billion tax bill from the government of Zambia.

United States Steel Corp.’s new paper continued its stretch of activity, having started the run on Tuesday when the company announced the results of a tender offering.

Intelsat SA and Frontier Communications Corp. added to the day’s volume.

Weekly cash flows for dedicated high-yield bond funds returned to the red in the most recent week, according to information reported by Lipper US Fund Flows on Thursday.

The funds sustained $1.174 billion of net outflows in the week to Wednesday’s close.

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