Upsized GameStop prices to cap $3.6 billion week; AMC plans bonds; energy leads market higher

By Paul Deckelman

New York, March 4 – The high-yield market was “on fire” Friday a trader said, noting a broad-based advance fueled by ample investor cash being put to work amid an increased tolerance for risk.

The primary market saw one deal price – electronic game retailer GameStop Corp.’s upsized $475 million issue of five-year notes.

Completion of that deal brought the week’s new-issuance total to $3.62 billion in three tranches, up from the $2.00 billion of new U.S. dollar-denominated, fully junk-rated paper which priced in five tranches last week, according to data compiled by Prospect News.

Syndicate sources meantime heard that movie theater operator AMC Entertainment Holdings Inc. plans to issue $300 million of subordinated notes as part of the financing for its acquisition of industry peer Carmike Cinemas Inc.

Away from the new deals, Friday was another big day for recently strengthening energy credits such as Continental Resources, Inc., Chesapeake Energy Corp. and California Resources Corp., as well as mining and energy concern Freeport-McMoRan Inc.

Statistical market performance measures were higher across the board for a seventh consecutive session on Friday and for an eighth session in the last 10 trading days. That winning streak started more than a week ago – last Thursday – after the indicators had been lower last Wednesday.

The indicators were meantime all ending higher versus where they had closed out last Friday – the third straight stronger week and fifth such better week in the last seven weeks.

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