Extended Stay, Zayo, PrimeSource cap $3.83 billion week; split-rated Quicken day’s big name

By Paul Deckelman

New York, May 1 – The high-yield market closed out the week and opened the month of May on a busy note on Friday, with three new dollar-denominated, fully junk-rated deals having priced, the most of any one session so far this week.

But the most notable deal of the session, in terms of both its size and the busy response it got from investors, was not a junk bond deal at all, strictly speaking.

Online lender Quicken Loans Inc. priced its $1.25 billion split-rated offering of 10-year notes.

The big deal attracted interest from both traditional junk bond investors and from high-grade investors.

Back in the purely junk precincts, the day’s three single-tranche issuers combined for some $1.05 billion of new paper.

Hotel operator Extended Stay America, Inc. came to market with a $500 million offering of 10-year notes, which priced as a regularly scheduled offering off the forward calendar. Those bonds were seen to have moved up solidly when they hit the aftermarket.

PrimeSource Building Products did a downsized $200 million issue off the calendar, opting to transfer some of the borrowing it was going to do in bonds to its concurrent term loan deal.

The day’s lone opportunistically timed and quickly shopped drive-by offering, from bandwidth infrastructure services provider Zayo Group LLC, consisted of $350 million of 10-year notes.

Statistical measures of market performance were higher on the session across the board after having been mixed on Thursday.

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