Upsized First Data drive-by leads biggest primary day since June; new Party City jumps

By Paul Deckelman and Paul A. Harris

New York, Aug. 5 – The high-yield new-deal market saw its biggest session since June 24 on Wednesday, as $2.01 billion of new dollar-denominated, fully junk-rated paper from domestic or industrialized country issuers came clattering down the chute, led by a hugely upsized $1.21 billion quick-to-market offering of secured eight-year notes from First Data Corp.

Two other issuers also brought opportunistically timed and quickly shopped deals to market during the session: Party City Holdings Inc.’s $350 million of eight-year notes and RSP Permian Inc.’s upsized $200 million add-on to its existing 2022 notes.

In addition, one regularly scheduled forward calendar deal, a $250 million issue of 5.5-year notes from Emdeon Inc., priced on Wednesday.

Only one of Wednesday’s four offerings – the Party City notes – had a significant aftermarket presence, traders said; those new bonds firmed by more than a full point and were among the most actively traded credits in Junkbondland.

There was also a considerable amount of continued activity in the recently priced issues from Pharmaceutical Product Development Inc. and Cable & Wireless Communications plc.

Away from the new issues, Avaya Inc.’s bonds – particularly its 2021 notes – fell sharply in heavy trading after the Santa Clara, Calif.-based company reported less-than-stellar quarterly numbers.

© 2015 Prospect News.
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