Post-holiday primary quiet; new Dynegy slides in heavy trading; Endeavour jumps after filing

By Paul Deckelman and Paul A. Harris

New York, Oct. 14 – The high-yield market re-opened on Tuesday after its Columbus Day holiday break on Monday, but the primary sphere essentially remained in a vacation mode, with no new deals pricing or even being announced.

Only two smallish deals were seen being actively shopped around at this point – a $200 million seven-year offering from Providence Service Corp., a Tucson, Ariz.-based provider of human social services, and a $150 million secured offering from Houston-based energy operator BPZ Resources, Inc.

In the secondary market, the recent new offerings from Dynegy Inc. were easily the day’s most actively traded bonds, each of the power generation company’s three tranches of new paper racking up volume in the tens of millions of dollars. But most of the activity in those bonds – which had jumped in initial aftermarket dealings following their pricing on Friday – was on the downside, in line with overall market heaviness.

Overall, traders said that things were things were generically lower by around ˝ point, reflecting continued recent equity weakness and, especially among the energy credits, the effects of sliding oil prices. Oil and gas sector names seen under pressure included Energy XXI Gulf Coast, Inc., Quicksilver Resources, Inc. and Precision Drilling Corp. – although Endeavour International Corp.’s bonds jumped in the wake of the exploration and production company’s holiday-weekend Chapter 11 filing.

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