Primary pace picks up as Blue Racer, Sunoco drive by; new Blue Racer, TerraForm firm

By Paul Deckelman and Paul A. Harris

New York, July 15 – The high-yield primary continued to bounce back on Wednesday from its long pricing drought suffered during most of the first half of this month.

Two new issues generating a total of $904.5 million of proceeds came to market. Sunoco LP priced an upsized $600 million issue of five-year notes, and Blue Racer Midstream, LLC brought a $300 million add-on to its existing 2022 notes to market.

The latter bonds were seen having moved up when they hit the aftermarket. Traders did not report any immediate secondary dealings in the new Sunoco paper.

They did see active trading at somewhat higher levels in Tuesday’s new issue of 10-year notes from TerraForm Power Operating, LLC.

Away from the new or recent deals, Micron Technology, Inc.’s bonds – which had risen Tuesday on the news that a state-run Chinese company was considering offering to buy the computer chip maker – extended those gains on Wednesday.

RKI Exploration and Production LLC, whose bonds had jumped more than a dozen points on Tuesday on news that the company will be acquired by WPX Energy, Inc., continued to actively trade near those higher levels.

Sabine Oil & Gas Corp.’s battered bonds were seen having firmed a little following the news of the company’s bankruptcy filing.

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