Primary quiet but for Corral, BlueScope talk; PQ busy; debt-cutting plan boosts Fortescue

By Paul Deckelman and Paul A. Harris

New York, April 27 – For the second time in the last three sessions, the usually active high-yield primary sphere posted a shutout on Wednesday in terms of new junk bonds actually pricing.

However, syndicate sources said that price talk emerged on pending deals that could come to market on either Thursday or Friday from Corral Petroleum Holdings AB and BlueScope Steel Co. The latter offering was also heard to have been upsized to $500 million.

Traders noted the intense interest in some of the recently priced high-yield offerings, particularly PQ Corp., which came to market on Tuesday and immediately jumped several points in busy aftermarket dealings.

Wednesday saw that issue again dominate the ranks of the Most Actives, and it was marginally better, price-wise, after Tuesday’s big initial gains.

Also counted among the ranks of Junkbondland’s busiest credits on Wednesday were the recent deals from Western Digital Corp. and NBTY, Inc.

Away from the new deals, bonds of Fortescue Metals Group formed smartly on the news that the Australian iron ore producer plans a sharp reduction in its debt levels using cash generated from sales at recently higher iron ore prices.

Higher oil prices were meantime seen as the catalyst behind a big jump in energy names, including California Resources Corp., Chesapeake Energy Corp. and Oasis Petroleum Inc.

Statistical market performance measures turned higher on Wednesday after having been mixed on Tuesday.

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