TerraForm, Cable & Wireless deals cap $2.46 billion week, new bonds firm; energy names off

By Paul Deckelman and Paul A. Harris

New York, July 31 – After a very slow start to the week, the high-yield primary sphere finished the week - and the month of July – with flying colors on Friday.

Syndicate sources reported that two single-tranche deals totaling $1.54 billion came to market during the session, up from the $920 million which had gotten done in two tranches during Thursday’s session.

Clean-power producer TerraForm Global, Inc. priced $810 million of seven-year notes.

British telecommunications provider Cable & Wireless Communications plc meanwhile did $750 million of seven-year notes.

Both of the day’s offerings were regularly scheduled deals off the forward calendar. Both priced at a substantial discount to par, with a 98 handle, and both were seen by traders having moved up in initial aftermarket dealings.

Those three deals, plus Thursday’s offerings, brought the week’s total of U.S. dollar-denominated, fully junk-rated bonds from domestic or industrialized-country borrowers to $2.46 billion – up from $1.31 billion that had priced in three tranches the previous week, ended July 24.

While the overall market tone was seen to have improved from where it had been earlier in the week, traders noted that energy-oriented credits such as California Resources Corp. were lower on the day, in line with sliding crude oil prices.

Statistical indicators of junk market performance were mixed for a second consecutive session on Friday, after having risen across the board for two straight sessions before that.

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