Warren Resources prices; market slips, then firms; Sprint active after T-Mobile withdrawal

By Paul Deckelman and Paul A. Harris

New York, Aug. 6 – The high-yield primary sphere continued to move in fits and starts, spitting out a $300 million offering for Warren Resources, Inc., though at a much higher yield than expected.

The company’s eight-year notes represented the day’s sole pricing, although it still made Wednesday busier than either Tuesday, which had seen no deals getting done, Monday, with just one $200 million issue, or last Friday, which was another shut-out.

However, traders quoted the new Warren bonds above their heavily discounted pricing level.

Elsewhere, traders said that the overall market seemed heavier in the morning but then did improve a little later on.

There was some fairly brisk activity, though with mixed levels, in Sprint Corp. paper after the wireless provider withdrew its faltering bid to acquire T-Mobile USA Inc. The latter’s bonds were also seen all over the place on the news. Both companies’ equity fell badly, though.

There was a little bit of upside follow-through for McClatchy Co. bonds, which had surged in heavy trading Tuesday on the news that sector peer Gannett Co. Inc. will buy out McClatchy and its other joint venture partners to take full control of the Cars.com online automotive sales site. However, the bonds were considerably less busy.

Statistical indicators of junk market performance were mixed for a third straight session on Wednesday.

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