Real Alloy prices 2014’s last deal; energy names up with oil, but Forest Oil falls again

By Paul Deckelman and Paul A. Harris

New York, Dec. 23 – The high-yield primary sphere saw what syndicate sources believe will probably be its final pricing for 2014, as Real Alloy Holding Inc. came to market Tuesday with a $305 million issue of secured four-year notes. That transaction – carrying a fat coupon but still having to price at a steep discount to par to get done – emptied the Junkbondland new-deal cupboard.

Traders did not see any real aftermarket in the bonds, nor in last week’s $700 million offering from Global Cash Access, Inc.

With little activity among new or recent issues, investors were busy in the existing bonds of energy names, which were mostly higher on Tuesday in line with a jump in world crude oil prices.

Names seen trading around included Seventy-Seven Energy, Inc. and former parent Chesapeake Energy Corp., Linn Energy LLC, Denbury Resources Inc. and Samson Investment Co.

There was busy activity as well in Forest Oil Corp. paper, which had plunged a week ago on the news that the terms of its merger with sector peer Sabine Oil & Gas LLC had been restructured. Those notes were seen down an additional 6 to 8 points on Tuesday, although there seemed to be no fresh additional negative news that would explain the new retreat.

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