Valeant rebounds; Alcoa ends weak again; Chesapeake announces layoffs; Bombardier firms

By Paul A. Harris and Stephanie N. Rotondo

Portland, Ore., Sept. 29– Sellers continued to enter the high-yield bond market on Tuesday following a hefty sell-off on Monday.

“Everybody is selling everything,” a trader said.

And while the market was deemed lower again, a trader said there was “a bounce of a point or so in a lot of this stuff.”

One bouncing name was Valeant Pharmaceuticals International Inc., which had gotten “bludgeoned yesterday with the stock” as Congressional Democrats sought to hand the company a subpoena.

Still, most things remained in retreat. For instance, Alcoa Inc. bonds continued to weaken after the company announced Monday that it would split itself into two companies.

Also lower was Chesapeake Energy Corp., which announced a round of layoffs as the Oklahoma City-based oil and gas producer struggles amid a low oil price environment.

Tuesday brought no news on the new issue front.

Two deals, NN, Inc. and SunOpta Foods Inc., are on the active calendar.

Books were scheduled to close Tuesday for NN's $300 million offering of eight-year senior notes (Caa1/B). SunTrust Robinson Humphrey Inc. is the left bookrunner. KeyBanc Capital Markets Inc. and Regions Capital Markets are the joint bookrunners.

And SunOpta Foods began marketing a $330 million offering of senior secured second-lien notes due 2022 (B3) on Monday. The deal, via joint bookrunners BMO Securities, Jefferies LLC and Rabobank, is set to price during the week of Oct. 5.

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