Primary quiet to cap $5.2 billion week, recent bonds hold gains; SandRidge sizzles, Murray fizzles

By Paul Deckelman and Paul A. Harris

New York, Aug. 14 – The high-yield primary market was shut out for a second consecutive session on Friday in terms of any new issues being priced. That was also the case on Thursday, after Wednesday’s pricing of

$1.8 billion in four tranches.

The lack of any new deals the past two days left the week’s new-issuance total were it had been on Wednesday, with $5.2 billion of new dollar-denominated, fully junk-rated paper from domestic or industrialized-country borrowers having priced in 13 tranches on the week.

Recently priced issues such as the two-part megadeals from Post Holdings, Inc. and Owens-Illinois, Inc. continued to hold onto the aftermarket gains they had notched during the week, but on very light flows.

Secondary market action away from the new deals included sizable gains in heavy trading in SandRidge Energy, Inc.’s paper after the oil and natural gas producer announced a debt redemption and exchange totaled at $525 million.

On the downside, Murray Energy Corp.’s bonds nosedived in active dealings after the after the coal producer lowered its outlook.

Statistical measures of junk market performance were mixed for a second straight session on Friday; they had turned mixed on Thursday after having been lower across the board on Tuesday and again on Wednesday, their fourth such loss in the previous five sessions. The indicators had also been mixed on Monday.

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