Dollar primary stays quiet; euro market busier; mining and oil names off; indicators slide

By Paul Deckelman and Paul A. Harris

New York, Dec. 8 – For a second consecutive session, the dollar-denominated segment of the high-yield primary market was quiet on Tuesday, with no pricings having taken place.

The sole pricing that did take place involved a euro-denominated deal from a German issuer, containerboard producer Progroup AG, which did a €95 million add-on to its existing 2022 secured notes.

Syndicate sources in that market meantime said that a European subsidiary of U.S. tire manufacturer Goodyear Tire & Rubber Co. would be shopping a euro-denominated eight-year bond deal around to investors, with pricing expected Wednesday.

Media company Clear Channel Outdoor Holdings, Inc. hit the road on Wednesday to market its proposed $225 million of five-year notes.

Away from the quiet primary, metals and mining issues like Fortescue Metals Group were under some pressure amid continuing weak demand for commodities, adversely affecting their bonds.

The energy market – exhibiting many of the same characteristics – also remained weak, pushing down such names as Chesapeake Energy Corp., Whiting Petroleum Corp. and Halcon Resources Corp.

Statistical measures of junk market performance were sharply lower across the board on Tuesday, their second straight downside session. The indicators had turned lower all around on Monday after having been mixed on Friday. It was the third lower session in the last four trading days.

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