By Paul Deckelman and Paul A. Harris
New York, Aug. 18 – The high-yield primary sphere remained on its mid-summer hiatus on Monday, with no new deals seen having priced during the session.
However, syndicate sources said that the forward calendar continued to build, with participants anticipating a busy market once the approaching Labor Day holiday is out of the way. Possibly as much as $40 billion of new paper is to be offered, they noted.
Monday’s news that Dollar General Corp. has decided to start a bidding war for discount store sector peer Family Dollar Stores, Inc., looking to out-muscle smaller rival Dollar Tree, Inc. with a higher offer, sparked some interest in Junkbondland; even though all three companies are nominally investment-grade rated.
| Moody’s Investors Service and Standard & Poor’s both put Dollar General’s Baa3/BBB- ratings on review for possible downgrades, citing the expected jump in the company’s leverage should its bid be successful.
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| Dollar General unveiled financing plans for its bid calling for the issuance of more than $12 billion of new notes and bank loans. Dollar General’s existing bonds, meantime, retreated in very active trading.
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| Away from the primaryside, NII Holdings Inc.’s paper surged on heavy volume, continuing its rebound after being battered for much of last week.
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| Statistical market performance indicators turned higher across the board on Monday after having been mixed on Friday.
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