Primary prices $7.35 billion in 10 tranches; Univision active; Party City gains

By Paul A. Harris and Abigail W. Adams

Portland, Me., May 10 – A massive Monday in the high-yield new issue market saw six issuers bring a total of 10 tranches of dollar-denominated junk, combining to issue a face amount of $7.35 billion.

All six issuers appeared at the drive-through window.

Executions were solid or better, with eight of the 10 tranches coming at the tight- or rich ends of talk, while the other two came in the middle of talk.

Two of the six issuers upsized their deals. Those two just happened to be the session's biggest issuers.

T-Mobile US, Inc. upsized to $3 billion from $2 billion, as it priced notes in three add-on tranches (Ba3/BB), all of them pricing rich to talk.

DISH DBS Corp. priced an upsized $1.5 billion issue (from $1.25 billion) of 5 1/8% eight-senior senior bullet notes (B2/B-) at par, at the tight end talk.

Meanwhile, the secondary space launched the week on soft footing.

While the space “leaked” throughout the day, volume remained light as market players eyed the new deals in the pipeline, a source said.

New paper continued to dominate the tape and remained well bid as accounts continued to seek out yield in new issues.

Univision Communications Inc.’s 4˝% senior secured notes due 2029 (B1/B+) continued to gain in active trading during Monday’s session.

Outside of recent issues, Party City Holdings Inc.’s capital structure saw a boost following better-than-expected earnings with its junk bonds up 2 to 3 points.

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