Upsized Cott, downsized Dana Corp., ADT price; oil gyrations continue; Cliffs off on news

By Paul Deckelman and Paul A. Harris

New York, Dec. 4 – The high-yield primary sphere picked up its pace on Thursday, as $1.35 billion of new junk bonds came to market in three tranches, up from Wednesday’s $834 million of new dollar-denominated, fully junk-rated paper from domestic or industrialized-country borrowers.

Cott Corp. priced an upsized $625 million of five-year notes; the day’s sole regularly scheduled forward calendar offering was quoted slightly below issue price.

In drive-by action, Dana Holding Corp. priced a $425 million 10-year issue. The bonds firmed slightly in active aftermarket dealings.

ADT Corp. sold a downsized $300 million of 5.25-year notes. Traders did not see any initial secondary dealings in the new credit.

Hub International Ltd.’s 2021 notes were actively traded, at somewhat lower levels, after the company brought an add-on tranche to those notes on Wednesday.

Away from the new deals, energy names continued to gyrate, with notable activity in Halcon Resources Corp. and California Resources Corp.

But the dominant non-new-deal name Thursday was Cliffs Natural Resources Inc., whose bonds lost ground after the company scrapped its tender offer and accompanying junk bond deal.

Flows of investor cash into high-yield mutual funds and exchange-traded funds – considered a key barometer of overall junk market liquidity trends – saw an $859 million net outflow in the latest reporting week, more than offsetting the previous week’s $44 million inflow.

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