Primary quiet to close out $770 million week; UCP slates deal; Lions Gate, Warner continue rise

By Paul Deckelman and Paul A. Harris

New York, Oct. 14 – The high-yield primary sphere reverted back to its quiet mode on Friday, with no new issues pricing during the session, in contrast to Thursday, which saw a pair of new issues getting done – the only issues to come to market during the whole week.

Those two new deals – from movie and television production company Lions Gate Entertainment Corp. and recording and music publishing company Warner Music Group Corp. – continued to trade on Friday, with both deals firming from the levels reached in Thursday’s aftermarket action.

High-yield syndicate sources meantime said that homebuilder UCP, Inc. has hit the road to market a $200 million five-year deal to potential investors.

They also said that interest is mounting in wireless operator Sprint Corp.’s $3.5 billion three-part securitization deal – expected to be investment-grade rated but still being marketed to junk accounts, along with high-grade and structured products investors.

Those two deals, plus biotechnology company Horizon Pharma plc’s $300 million eight-year deal, now on the road, pretty much constitute the forward calendar that junk investors will be looking at in the coming week.

Statistical market performance measures turned higher across the board on Friday, in contrast with Thursday’s session, when those indicators all headed south for the first time in almost a month, after being mixed over the previous two sessions.

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