Upsized Petra Diamonds and Zayo, downsized USI lead $2.67 billion session; oils gain

By Paul Deckelman and Paul A. Harris

New York, April 5 – Activity picked up on Wednesday in the high-yield primary market, with a total of five issuers each doing a single-tranche deal, generating some $2.67 billion of new U.S.-dollar-denominated and fully junk-rated paper from domestic or industrialized-country borrowers..

That was in sharp contrast to Tuesday, when no such bonds were priced, and beat Monday’s session, when $1 billion got done in one two-tranche offering.

Syndicate sources said that European issuer Petra Diamonds Ltd. had the big deal of the day, pricing an upsized $650 million of five-year secured notes as a regularly scheduled forward calendar offering.

Insurance brokerage and consulting company USI Inc. did a downsized $615 million of eight-year notes, also off the forward calendar.

And industrial components manufacturer and supply-chain outsourcing services provider Park-Ohio Holdings Corp. priced $350 million of 10-year paper via a subsidiary as a scheduled offering.

Wednesday also saw a pair of quick-to-market same-day deals.

Communications infrastructure services provider Zayo Group, LLC did an upsized $550 million fungible add-on to the existing issue of 10-year notes that it sold back in January.

And CNH Industrial Capital LLC, a financing unit of global heavy equipment manufacturer CNH Industrial NV, priced $500 million five-year notes.

Away from the new deals, energy names such as California Resources Corp. were seen better amid a second straight session of stronger crude oil prices.

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