Dollar market quiet, but pricing action seen in Europe; mining, energy names see rebound

By Paul Deckelman and Paul A. Harris

New York, Dec. 9 – The dollar-denominated segment of the high-yield primary market remained quiet on Wednesday, with no pricings seen there for a third consecutive session.

However, there was some pricing action going on in Europe. German cable operator Unitymedia Hessen GMBH & Co. KG brought a €420 million 10-year secured issue to market successfully.

Goodyear Tire & Rubber Co. tapped the euro market for €250 million of eight-year notes brought by a European subsidiary.

Back on the domestic front, Kraton Polymers LLC remained in the market with a $425 million eight-year issue, while Clear Channel Outdoor Holdings, Inc. continued to shop its $225 million of five-year paper around, with pricings seen possible for either or both deals during Thursday’s session or Friday’s.

Little aftermarket activity was seen in recent new issues other than some trades – but no real price action – in Ball Corp.’s dollar-denominated five-year megadeal.

There was some action away from the new deals, with resources names like Fortescue Metals Group and steelmaker ArcelorMittal SA seen better after having been beaten down on Tuesday as part of a broad downturn by metals, mining and energy issues.

In the latter sector, Chesapeake Energy Corp.’s paper was also staging a modest rebound.

Despite a better tone in those and other recently struggling peer names, statistical measures of junk market performance were lower across the board for a third consecutive session on Wednesday.

© 2015 Prospect News.
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