KCA Deutag prices, trades up; calendar builds; Mattel active again; U.S. Steel trades

By James McCandless and Paul A. Harris

San Antonio, March 23 – A single new issue wrapped the second-slowest week of the year so far for new dollar-denominated high-yield deals.

KCA Deutag UK Finance plc priced an upsized $400 million of five-year senior secured notes in an offering that moved smartly higher when it freed for trade.

The KCA Deutag deal brought the week’s total for issuance to $1.85 billion, a sharp drop from the previous week.

Meanwhile the calendar grew substantially, promising a busy week ahead despite the market close for the Good Friday holiday.

The high yield secondary market closed the week muted, according to traders, as newer issues were driven by news.

Mattel, Inc.’s notes started climbing again after trading down when Toys “R” Us decided that it would liquidate its U.S. assets, a process that began in earnest Friday with the announcement of store-closing sales.

United States Steel Corp.’s new paper closed the week changing hands actively, extending a run of activity that began Tuesday when the company announced the results of a tender offering.

A recent pricing from J. C. Penney Co., Inc. continues to face downward pressure as part of an overall squeeze in the retail space.

Intelsat SA and Frontier Communications Corp. capped the week in high volume.

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