Primary quiets, but Michael Baker slates deal; new QEP steady; Windstream falls; oils jump

By Paul Deckelman and Paul A. Harris

New York, Nov. 7 – The high-yield primary market went silent on Tuesday as far as new-deal pricings go – its first such shutout since back on Oct. 20.

However, there was activity going on behind the scenes, as engineering firm Michael Baker International, LLC was heard by syndicate sources to be shopping around a $227.5 million secured notes offering, with pricing seen likely by the end of the week.

The sources meantime reported that previously announced deals from Pentagon contractor Kratos Defense & Security Solutions, Inc. and dry-bulk shipping company Navios Maritime Holdings Inc. were being actively marketed to investors.

Among recently priced deals, secondary market traders said that Monday’s issue of 8.25-year notes from energy operator QEP Resources Inc. was holding onto the solid gains it had notched when it hit the aftermarket.

But the day’s other transaction, from telecom provider Windstream Holdings, Inc., moved down sharply Tuesday after having already priced at a discount.

Away from the new deals, energy names such as California Resources Corp., Denbury Resources Inc. and QEP’s existing bonds all firmed smartly, riding their upside momentum of the past several sessions – even though world crude oil prices declined after three straight advances.

Valeant Pharmaceuticals International Inc.’s bonds also moved up, as the Canadian drugmaker reported third-quarter earnings and reported continued progress in cutting its massive debt load.

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