Restructured Kindred megadeal prices; iHeart jumps on asset sale; funds lose $1.89 billion

By Paul Deckelman and Paul A. Harris

New York, Dec. 11 – After a one-day hiatus, year-end pricing activity in the high-yield primary sphere resumed on Thursday.

Syndicate sources said that Kindred Healthcare Inc. brought to market its $1.35 billion two-part issue. Traders reported no immediate aftermarket activity in the health-care facilities operator’s new deal, which priced late in the session.

The syndicate sources also noted that Siemens Audiology Solutions priced a downsized euro-denominated deal.

Back in the dollar market, the sources noted the presence of two more potential issues on the forward calendar, for Global Cash Access Holdings Inc. and Real Alloy Holding Inc., which likely would be the final deals of the year, should they be priced – by no means a certainty given the currently difficult market conditions.

Away from the new deals, the energy names – whose recent slide has been largely responsible for those unsettled market conditions – seemed to take a backseat on Thursday. Only California Resources Corp.’s 2024 bonds were seen among the Most Actives, slipping a little on heavy volume.

Instead, other types of credits were busy, with the standout performer being iHeart Media, Inc., whose bonds jumped in busy dealings on the news of a sizable asset sale.

High-yield mutual funds and exchange-traded funds were seen down by $1.885 billion in the latest reporting week, on top of the previous week’s $859 million outflow.

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