Quiet primary closes $7.3 billion new issuance week; recent deals trade near issue prices

By Paul Deckelman and Paul A. Harris

New York, Dec.16 – The high-yield primary market spent a quiet Friday, syndicate sources said, with no new U.S. dollar-denominated and fully junk-rated issues pricing during the session, in contrast to the $3.16 billion from domestic or industrialized-country which had priced during Thursday’s session.

While there were no new deal announcements on Friday, the sources said that there might still be enough liquidity in the market to accommodate a few deals should any arise on Monday or Tuesday.

Meanwhile several offerings remain on the forward calendar – from Downstream Development Authority, Avison Young (Canada) Inc. and Baffinland Iron Mines Corp.

The lack of any new issues Friday closes the books on the week’s new-issuance right where it was on Thursday, with $7.34 billion of new paper having come to market in 13 tranches, although that was down from last week’s $9.60 billion in 16 tranches.

In the secondary market, traders saw some activity in new issues from the likes of Tesoro Corp., Diamondback Energy Inc. and Gulfport Energy Corp., which mostly traded around their respective new issue prices.

Statistical market performance measures were mixed for a second consecutive session on Friday; they had turned mixed on Thursday after being lower on Wednesday – their first negative session this month – and higher across the board on Tuesday. Friday was their third mixed performance in the last five.

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