Parexel, Cable & Wireless price, Parexel gains; PetSmart pounded; funds gain $124 million

By Paul Deckelman and Paul A. Harris

New York, Aug. 10 – High-yield new issuance resumed at a brisk pace on Thursday as a pair of forward calendar offerings accounted for more than $1.4 billion of new dollar-denominated and junk-rated paper.

Biopharmaceutical services company Parexel International Corp. priced an upsized $770 million of eight-year notes, which later moved up in heavy initial trading.

British telecommunications operator Cable & Wireless Communications plc did a $700 million issue of 10-year notes.

Primaryside sources meantime said that Tesla Inc. is expected to come to market during Friday’s session with a closely watched and greatly oversubscribed $1.5 billion offering of eight-year notes.

Back among the deals which have already priced, traders saw continued brisk volume among recent issues from fast-food eatery operator Restaurant Brands International Inc. and power generating company Dynegy Inc. – with the latter’s 8.5-year notes continuing to struggle.

Away from the new deals, specialty retailer PetSmart Inc.’s several issues of bonds fell sharply on busy volume following the news that its chief executive officer will be leaving the company.

Statistical market performance measures were lower across the board for a third consecutive session.

However, another numerical indicator – the flow of investor funds into or out of high-yield mutual funds and exchange-traded funds – rose moderately this week, its second consecutive weekly gain, as $124 million came into those funds during the week ended Wednesday.

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