Lennar, KB Home, Northwest Hardwoods lead more relaxed primary; Wynn brings split-rated deal

By Paul A. Harris and Paul Deckelman

New York, Feb. 11 – After three consecutive hectic sessions during which the high-yield primary market churned out new issues at a hefty $3.5 billion-plus pace – though aided by several multi-tranche megadeals – the new-deal realm saw a more moderate level of activity on Wednesday.

Syndicate sources said some $628 million of new dollar-denominated, fully junk-rated paper had priced in three tranches – quite a comedown from the $3.89 billion that had come to market on Tuesday in eight tranches from six issuers. And that busy day, in turn, had followed issuance of $4.69 billion in five tranches on Monday and $3.55 billion in three tranches last Friday.

Homebuilders were the driving force behind Wednesday’s activity, with KB Home and Lennar Corp. each doing a quickly shopped $250 million offering, with Lennar’s an upsized add-on to its existing 2019 notes.

Lumber producer Northwest Hardwoods, Inc. also did an add-on, to its 2021 secured notes, downsized to $135 million.

Gaming giant Wynn Resorts Ltd., meantime, brought a giant-sized split-rated offering of 10-year notes through a pair of subsidiaries, attracting some junk investor interest.

For yet another day, secondary market activity was largely dominated by heavy trading in recently priced issues, including Tuesday’s offerings from Ally Financial Inc. and Univision Communications Inc.

Statistical market performance measures turned mixed on Wednesday after having been higher across the board on Tuesday.

© 2015 Prospect News.
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