Primary falls silent as Dog Days arrive, capping $5.62 billion week; Tallgrass Energy busy

By Paul Deckelman and Paul A. Harris

New York, Aug. 19 – For the first time this week, the high-yield primary market ended the session Friday with no new deals having been priced, and it quite possibly may have seen its last pricing for the next week or so.

The lack of any new offerings of dollar-denominated and fully junk-rated paper left the week’s new-issuance total right where it had finished off on Thursday, at $5.62 billion in 12 tranches, down from last week’s total.

Traders said that the final deal to price this week, Thursday’s offering from Tallgrass Energy Partners, LP, was actively traded, hanging in at levels well above its issue price.

There was also a fair amount of trading going on in Wednesday’s big two-part offering from Diamond Resorts International, Inc., with the secured part of the deal continuing to trade well above where the unsecured portion was.

Away from the new deals, traders said that the most notable names of the day – for a second consecutive session – were private prison operators Corrections Corp. of America and Geo Group, Inc., which were sent reeling on Thursday after the Department of Justice announced that it would phase out the use of such privately run correctional facilities for federal prisoners.

Statistical market performance measures turned mixed on Friday.

The indicators were meantime higher across the board versus where they had finished last Friday – the third straight week-over-week gain.

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