Primary drought ends as American Eagle, Gulfport price in firmer market; NII slide continues

By Paul Deckelman and Paul A. Harris

New York, Aug. 13 – A two-session drought in the high-yield primary market came to an end on Wednesday, as syndicate sources reported that two new deals totaling $491 million had priced during the session.

The larger of the two was an upsized and quickly shopped add-on to Gulfport Energy Corp.’s existing 2020 notes.

Meanwhile, American Eagle Energy Corp. did a regularly scheduled deal off the forward calendar for $175 million of five-year secured notes.

Traders did not see either of the new issues in the aftermarket.

Away from the new deals, NII Holdings Inc.’s bonds were in retreat for a second straight session following Tuesday’s announcement by the provider of wireless service to several Latin American countries indicating that it will likely have to file for Chapter 11.

On the earnings front, Pinnacle Foods, Inc.’s bonds were better after the maker of many well-known branded consumer foods reported better second-quarter numbers versus a year ago, as well as a big debt paydown using the break-up fee from its failed merger transaction with Hillshire Brands Co.

Traders saw a generally firmer tone to the overall market, with more gainers than decliners.

Statistical indicators of junk market performance were higher across the board for the second time in three sessions on Wednesday after having turned mixed on Tuesday.

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