Primary market still sidelined, though Warren on tap; busy McClatchy jumps on Gannett deal

By Paul Deckelman and Paul A. Harris

New York, Aug. 5 – The high-yield primary market was dead in the water on Tuesday, with no new dollar-denominated, fully junk-rated deals heard having priced.

Only a $125 million secured issue for Australia’s Linc Energy Ltd. was announced, according to syndicate sources.

The new-deal arena meantime awaited a possible Wednesday pricing from energy concern Warren Resources, Inc.

In the secondary sphere, traders saw little or no activity in recently priced issues such as Monday’s offering from Sunshine Oilsands Ltd. or last week’s deal from William Lyon Homes, Inc.

But away from the new issues, there was no shortage of activity in the bonds of McClatchy Co. The newspaper publisher’s notes were the most heavily traded junk issue, gaining several points on the news that sector peer Gannett Co. Inc. plans to acquire the roughly 73% stake in online auto shopping website Cars.com that it doesn’t already own from McClatchy and several of its other joint venture partners. However, there was meantime not much activity in Gannett’s own bonds.

Elsewhere, many companies were reporting earnings. Tenet Healthcare Corp.’s bonds gained after the hospital company put out its numbers. But energy concern Quicksilver Resources Inc.’s bonds and shares retreated after it missed analysts’ estimates.

Statistical indicators of junk market performance were mixed for a second straight session on Tuesday.

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