Primary quiet; Kraton, Clear Channel slate; new ClubCorp notes off; energy credits slide

By Paul Deckelman and Paul A. Harris

New York, Dec. 7 – The high-yield primary market opened the new week on a quiet note on Monday, with no new issues seen having priced during the session.

Syndicate sources did say that two prospective issuers began shopping dollar-denominated junk bond deals.

Kraton Polymers LLC and Clear Channel Outdoor Holdings, Inc. were both heard to have hit the road to market their respective new deals to investors, Kraton’s a $425 million offering of eight-year notes and Clear Channel’s a $225 million of five-year paper.

They also said that Goodyear Tire & Rubber Co. was doing something that most domestic junk issuers usually don’t do – tap the European high-yield market with an eight-year euro-denominated issue.

Among recently priced new dollar-denominated bonds, traders saw Friday’s sole new deal, golf course operator ClubCorp. Holdings Inc.’s eight-year notes, having lost more than 1 point on the session in fairly active trading.

It was another tough day for the energy sphere.

Crude oil prices hit their lowest levels since 2009, which put oil and natural gas credits such as Energy XXI Ltd., Comstock Resources Inc. and Oasis Petroleum Inc. under pressure in active dealings.

Chesapeake Energy Corp.’s bonds were also lower, with the company’s recently announced exchange offer for its notes as well as oil prices weighing on its issues.

Coal names such as Peabody Energy Corp. and Consol Energy Inc. were also lower.

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