Warner sets price talk; Intelsat sees losses; Peabody active; Rent-A-Center stabilizes

By Colin Hanner and Paul A. Harris

Chicago, Oct. 12 – No new dollar-denominated paper priced during Wednesday’s session.

Warner Music Group Corp. set price talk in its $630 million equivalent offering of eight-year senior secured notes, which is expected to price Thursday.

The junk market was weaker Wednesday, though trading activity was still generally muted, given Yom Kippur.

“It seemed like the market was on a little bit of a breather today,” a trader said.

The market was eyeing the release of the minutes from the Federal Reserve’s September policy meeting. The minutes indicated that the vote to keep rates steady for the time being was a “close call” and that a rate increase come December is highly likely.

One trader pointed to Intelsat SA as active. The Caa2-rated Jackson 7¼% notes due 2019 were down “around 1½ to 2” points to 81 from 83, and the Ca-rated Luxembourg notes were down “2 points” to 31½, the trader said.

This comes off the news that Intelsat’s Silver Lake directors Egon Durban and Simon Patterson will resign from its board of directors at the end of the year.

After tumbling on Tuesday, Rent-A-Center Inc. seemed to stabilize and was “not nearly as active,” as one trader put it. After the 6 5/8% notes due 2020 took a hit of 10 points on Tuesday, “price points were right around the same zip code” and traded with an “86 handle” on Wednesday.

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