Communications Sales downsizes deal; Gulfport prices; bonds gain; funds up $791.6 million

By Paul A. Harris and Paul Deckelman

New York, April 16 – The high-yield primary market kept churning out new paper on Wednesday.

Syndicate sources said that Communications Sales & Leasing, Inc. came to market with a $1.51 billion two-part transaction that consisted of secured and unsecured eight-year notes. But the regularly scheduled forward calendar offering was downsized before it priced.

The sources also saw Gulfport Energy Corp. do a $350 million eight-year issue, also pricing off the calendar.

Traders said that both of those new deals firmed smartly when they were freed for aftermarket action.

They noted that for yet another session, trading in recently priced deals was the dominant feature in the market, seeing brisk activity in new paper from names such as Charter Communications, Inc., Carrols Restaurant Group, Inc., Level 3 Communications Inc. and DaVita HealthCare Partners Inc.

Away from the new deals, Halcon Resources Corp.’s bonds moved up on the news that the company, which recently arranged a private debt-for-stock exchange covering some of its notes, had lined up a second, similar deal with some of its other noteholders.

Statistical indicators of junk market performance turned mixed on Thursday after having been higher on Wednesday.

High-yield mutual funds and exchange-traded funds, considered a reliable barometer of overall junk market liquidity trends, saw their fourth straight weekly inflow, rising by a net $791.6 million. That improvement pushed their already-robust year-to-date net inflow position to a new 2015 high.

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