Targa, Graphic Packaging drive by; new Tesoro Logistics trades up; funds gain $1.7 billion

By Paul Deckelman and Paul A. Harris

New York, Oct. 23 – Drive-by issuers took the wheel on Thursday in the high-yield primary sphere, with two quickly shopped, single-tranche deals accounting for $1.05 billion of new paper, according to syndicate sources.

Targa Resources Partners LP priced an upsized $800 million of five-year notes. Those bonds came to market late in the session, and traders said they had not seen any of them in initial aftermarket dealings.

Graphic Packaging International, Inc. did $250 million of eight-year notes, which were quoted later trading up by as much as 1 point.

Wednesday’s $1.3 billion two-part offering from Tesoro Logistics LP was seen by several market sources to have firmed solidly on heavy volume, continuing the recent pattern of busy activity to the upside on new deals.

There were also continued busy dealings in Tuesday’s issues from Schaeffler Holding Finance BV and IHS, Inc., although these were well down, volumewise, from Tuesday’s and Wednesday’s sessions.

Traders said the overall market was better, continuing its rebound from recent losses, and statistical indicators of market performance turned higher across the board after having been mixed on Wednesday.

And another statistical measure, flows of investor cash in to and out of high-yield mutual funds and exchange-traded funds, was strongly positive, with a $1.71 billion net inflow seen for the week ended Wednesday. That was in contrast to the previous week’s nearly $549 million net cash loss from those funds.

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