No deals price in session; XPO slates; El Paso Pipeline, Kinder Morgan jump on consolidation plan

By Paul Deckelman and Paul A. Harris

New York, Aug. 8 – The new week opened on Monday in Junkbondland on a quiet note, typical for a summer Monday, traders said.

No new issues were seen having priced during the session.

And syndicate sources reported only one new deal announcement on the day, from Greenwich, Conn.-based transportation logistics company XPO Logistics, Inc., whose $500 million five-year note offering is expected to price later in the week.

Traders did not see much activity among recently priced issues, outside of the split-rated QVC Inc. 10.5-year notes, which ended slightly lower, but on brisk volume.

Friday’s purely junk-rated new credits from Intrepid Aviation Group Holdings LLC and NCSG Crane & Heavy Haul Corp. were being quoted around bid to slightly higher than their respective issue prices.

Away from the new deals, traders saw a fair amount of upside activity in the bonds of Kinder Morgan, Inc. and especially El Paso Pipeline Partners, LP. This came as Kinder announced plans to simplify its complex operational structure by consolidating its various energy holdings. It plans to purchase all of the outstanding equity in its affiliated companies El Paso Pipeline Partners, Kinder Morgan Energy Partners, LP and Kinder Morgan Management, LLC.

Trading was otherwise reported dull on the day, though with a firmer bias.

Statistical indicators of junk market performance were higher across the board on Monday for the first time since July 23.

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