TerrraForm drives by, WPX deal slates, Charter junk seen ahead

By Paul Deckelman and Paul A. Harris

New York, July 14 – The high-yield primary – which on Monday finally broke out of its long pricing drought and brought its first new deal to market since late June – made it two in a row on Tuesday, pricing its second deal in as many sessions.

Clean-energy producer TerraForm Power Operating LLC’s quickly shopped $300 million of 10-year notes surfaced too late in the session for any kind of real aftermarket, traders said.

But there was ample trading in Monday’s breakthrough issue, from insurance claim software provider Audatex North America, Inc. That add-on to its 2023 notes traded right around its issue price of slightly below par – bur well down from the levels that the existing notes had occupied before the drive-by add-on offering had come to market.

Apart from the issues which have actually priced syndicate sources said that the forward calendar was once again building.

They saw WPX Energy, Inc. starting a roadshow for a planned $1.2 billion two-part offering, likely to price at the end of the week.

They also heard that Charter Communications Inc. – last seen bringing a giant-sized multi-tranche, split-rated offering that was mostly of interest to high-grade investors rather than to traditional junk bond accounts – will soon show up with a $3.5 billion pure junk offering, as part of the financing for its acquisition of Time Warner Cable Inc.

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