Primary is quiet as market returns to work; Community Health jumps on results, Tronox up

By Paul Deckelman and Paul A. Harris

New York, Feb. 21 – The high yield market reopened on Tuesday following the extended Presidents Day holiday break in the United States, which had seen the fixed-income markets closed on Monday.

But there was little or nothing going on in the dollar-denominated primary market, although syndicate sources were confident that things will pick up later on in the week, with several deals expected to get done.

Domestic issuer Levi Strauss & Co. was heard to be hitting the road in Europe with a €450 million issue of 10-year notes.

In the secondary arena, there was modest activity seen in last week’s three new issues, from NGL Energy Partners LP, Aecom and Gateway Casinos & Entertainment Ltd., with the bonds all staying around where they had finished last week or perhaps a touch higher.

But most of the day’s activity took part away from the recently priced issues.

Community Health Systems Inc.’s bonds, and its shares, jumped in heavy trading after the hospital operator reported results that beat Wall Street’s expectations and increased the number of hospitals it plans to sell to bring down its debt.

Tronox Ltd.’s bonds and shares firmed smartly as the pigments producer and specialty chemical company announced plans for an accretive acquisition and a divestiture, with Moody’s Investors Service thus eying it for a possible ratings upgrade.

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