Primary expects zero December new issuance; energy names up; Staples jumps; Envision down

By Paul A. Harris and Abigail W. Adams

Portland, Me., Dec. 7 – The domestic primary market remained shuttered throughout the week and prospects for new deal activity before the year draws to a close are now diminishing.

If no new paper comes to market, it will be the first month since to see no new issuance since Prospect News began tracking the high-yield market in 2001.

The average new deal volume in December for the past eight years has been $15.44 billion.

The week came to a brutal close with more carnage in equity markets.

However, crude oil futures and several names in the energy sector saw a reprieve on Friday in response to news that Russia would join OPEC in oil production cuts.

After a volatile week, California Resources Corp.’s 8% senior notes due 2022 and Whiting Petroleum Corp.’s 6 5/8% senior notes due 2026 closed Friday with gains but were only slightly improved week-over-week.

Outside of energy, Staples, Inc.’s 8½% senior notes due 2025 were in focus in the secondary space with the notes making large gains in high volume activity after an earnings beat.

However, Envision Healthcare Corp.’s 8¾% senior notes due 2026 (Caa1/B-), one of the last billion-dollar deals to price in 2018, continued to trade down in the secondary space with the notes now almost 10 points below their issue price.

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