BWAY offering leads $1 billion primary as market struggles; funds plunge record $7 billion

By Paul Deckelman and Paul A. Harris

New York, Aug. 7 – The recently becalmed high-yield primary sphere saw its first $1 billion session in a week on Thursday. Three issuers combined to bring that face amount of new dollar-denominated and fully junk-rated paper to market, all in regularly scheduled deals pricing off the forward calendar. Proceeds totaled $990 million.

BWAY Intermediate Co. had the day’s big deal, a downsized $650 million of seven-year notes that priced slightly below par.

US Shale Solutions, Inc. sold $210 million of three-year notes as part of units with equity warrants. The units came at a sizable discount to par.

Brundage-Bone Concrete Pumping, Inc. did $140 million of seven-year notes.

Traders did not see immediate aftermarket activity in any of the day’s three deals.

However, they did see Wednesday’s offering from Warren Resources, Inc. trading above the par level. That $300 million eight-year issue had priced well below par.

Away from the new deals, Sprint Corp.’s bonds remained busy a day after the news that the wireless carrier had given up its months-long pursuit of smaller sector peer T-Mobile USA Inc.

Traders said that the market started out on a stronger note but weakened later on in the day in line with a stock market slide.

Another indicator, the flow of cash into or out of high-yield mutual funds and exchange-traded funds, saw its fourth straight huge loss. In fact, it was the largest such downturn ever recorded.

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