J.C. Penney, Centene, revived Gogo lead drive-bys; recent deals busy; funds gain $748 million

By Paul Deckelman and Paul A. Harris

New York, June 9 – The high-yield primary market remained a busy place on Thursday, although the overall volume total fell sharply from Wednesday’s $6.75 billion, which had been the second-heaviest daily volume of new issues seen so far this year in Junkbondland.

The sources saw a trio of $500 million sales, tied for the biggest deal of the day, from retailer J.C. Penney Corp., Inc., healthcare company Centene Corp. and from Gogo, Inc. a provider of communications services to the global aviation industry. The latter deal had been shopped around the market last month and had actually priced, only to be cancelled before it could settle. Centene’s deal was an add-on to its existing notes.

Traders did not see much in the way of initial aftermarket dealings in the several new bond issues.

However, they saw heavy-volume trading in the three megadeals that came to market on Wednesday – for computer technology giant Dell, Inc., satellite television broadcaster DISH Network Corp., and liquid natural gas company Cheniere Energy Partners LP.

Statistical market performance measures turned mixed on Thursday, after having been higher for a fourth consecutive session on Wednesday. Thursday was the second mixed session in the last six trading days.

Another numerical indicator – flows of investor cash into or out of high-yield mutual funds and exchange-traded funds – was on the upside for a second consecutive week, with $748.153 million more coming into those weekly-reporting-only domestic funds than leaving them.

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