Primary resumes with three dollar deals, new Downstream jumps; energy names climb

By Paul Deckelman and Paul A. Harris

New York, Jan. 24 – After a one-day hiatus, new-deal pricing resumed on Wednesday in the high-yield primary market.

Syndicate sources saw three single-tranche deals totaling just over $1 billion get done during the session, in contrast to Tuesday’s complete shutout.

Commercial mortgage real estate investment firm Starwood Property Trust, Inc. had the big deal of the day, an upsized and quickly shopped $500 million issue of three-year notes.

Also driving by with an enlarged quick-to-market transaction was oil and natural gas exploration and production company Diamondback Energy Inc., which priced a $300 million add-on to its existing 2025 bonds sold in late 2016.

The day’s sole regularly scheduled deal coming off the forward calendar came from tribal gaming operator Downstream Development Authority, which priced $270 million of five-year secured notes.

When they hit the aftermarket, traders said the new Downstream Development notes firmed smartly in active dealings.

Looking at recently priced deals, traders saw fairly busy volume – but precious little price movement – in the two halves of wireless service provider T-Mobile USA, Inc.’s $2.5 billion behemoth of a bond deal.

Mattel, Inc.’s eight-year notes sold at the end of last year notched handsome gains for a second straight session, even though its stocks were in retreat; both its stock and bonds had shot up on Tuesday, buoyed on renewed market speculation that rival toymaker Hasbro Inc. might make another offer to buy Mattel.

© 2015 Prospect News.
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