Teekay, ContourGlobal bring add-ons in quiet pre-holiday session; Valeant firms after call

By Paul Deckelman and Paul A. Harris

New York, Nov. 10 – High-yield primary sphere pricing activity slowed markedly on Tuesday, with syndicate sources seeing just a pair of smallish add-on offerings getting done.

Teekay Corp., a provider of marine transportation, oil production and storage services to the offshore energy industry, priced a $200 million add-on to its January 2020 notes. They were quoted up around 1 point in initial aftermarket dealings.

ContourGlobal Power Holdings SA, a developer and operator of wholesale electric power generation businesses, did a $100 million addition to its existing June 2019 secured notes.

The slightly less than $300 million generated by those two deals was well down from the $1 billion of new dollar-denominated, fully junk-rated paper that priced in Monday’s quickly shopped 10.25-year transaction from hospital operator HCA, Inc.

That deal, meantime, was seen trading about ˝ point higher, on heavy volume.

But other recent offerings, such as last week’s deals from Charter Communications, Inc. and First Data Corp., were being quoted easier on the day, in line with an overall weaker junk market.

One exception to the rule was Valeant Pharmaceuticals International, Inc., whose bonds rose after the embattled Canadian drug manufacturer held a conference call – its second in less than three weeks – during which company executives outlined the steps it is taking to address investor concerns in the wake of severe recent criticism of its business practices.

© 2015 Prospect News.
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