Junk market calm pre-holiday; Europe readies two deals; Tenet busy, Tesla keeps firming

By Paul Deckelman and Paul A. Harris

New York, Sept. 1 – As expected, the high-yield market began the new month of September on Friday and closed out the traditional pre-Labor Day late-summer activity lull on a quiet note.

The domestic primary arena remained becalmed, although syndicate sources expect things to pick up following the extended holiday weekend in the United States.

In Europe, meanwhile, the sources said that a pair of deals would be marketed during the upcoming week. Spanish fashion retailer Grupo Cortefiel is preparing a two-part offering of seven-year secured paper while U.S.-based specialty chemical producer Kronos Worldwide, Inc. will be shopping a euro-denominated offering of eight-year secured notes.

Back in the dollar market, traders said volume was very light, with many market participants taking an early exit.

Even Tesla, Inc., probably the most active junk market issue in recent sessions, saw but a handful of large-sized trades. As has been the case over the last few sessions, the electric car manufacturer’s recently priced issue was firming from the lows which it had hit shortly after pricing in mid-August.

Hospital operator Tenet Healthcare Corp.’s bonds were the most active credit during the otherwise sleepy session, pushing upward in the wake of the company’s Thursday announcement of management changes and a shareholder rights plan.

Statistical market performance measures finished higher across the board for a third straight session on Friday.

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