Junk off early lows, cuts losses; Pimco, conferences, quarter-end still activity; Zebra on tap

By Paul Deckelman and Paul A. Harris

New York, Sept. 29 – The high-yield primary sphere was quiet for a second consecutive session on Monday, with syndicate sources reporting that no new dollar-denominated, fully-junk rated issues were seen pricing during the day.

However, the sources said that price talk was out on a $1.25 billion eight-year offering from Lincolnshire, Ill.-based printing technologies company Zebra Technologies Corp., which could price after the books close on the megadeal on Tuesday afternoon.

But while that deal is expected to get done, the sources said that General Cable Corp., a Highland Heights, Ky.-based producer of copper, aluminum and fiber-optic wire and cable products, had postponed its planned $250 million offering, citing market conditions.

In the secondary realm, traders said that activity was dull, while one described the day’s dealings as “lackluster.”

Among the factors cited were the continued fallout from Friday’s unexpected announcement from investment giant Pimco that long-time bond guru Bill Gross will leave the company following heavy redemptions from its funds. Players were trying to strategize what that shakeup might mean to the market and how they can play it.

Another factor cited was this week’s Deutsche Bank leveraged finance conference in Arizona, an always well-attended event that pulls portfolio managers and other key decision makers away from the day-to-day market.

And traders noted the looming end of the month and the calendar third quarter as one more excuse for investors not really to do much.

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