Primary quiet as deals pushed off, closing $5.7 billion week; market struggle continues

By Paul Deckelman and Paul A. Harris

New York, Aug. 1 – The high-yield market began the month of August on Friday as inauspiciously as it had closed out July on Thursday – under pressure, with many more credits quoted down rather than up on the day.

There was also a dearth of new activity going on in the primary market; syndicate sources said that a number of junk deals which had been considered as “possibles” for pricing on Friday were instead pushed off until the coming week, including the offerings from energy operators Warren Resources, Inc., Sunshine Oilsands Ltd., Rooster Energy Ltd. and Jupiter Resources Ltd., as well as non-energy name NCSG Crane & Heavy Haul Corp.

Terms did surface on one deal, from builder William Lyon Homes, Inc. – which had priced late Thursday, by which time most participants had left for the day, so its pricing and the terms did not become landmarks until Friday morning.

That brought the week’s tally of new dollar-denominated and fully junk-rated paper up to just under $5.7 billion in 16 tranches, up from $4.56 billion that came to market in eight tranches during the previous week, ended Friday, July 25, according to data compiled by Prospect News.

Traders did not see very much activity in recent deals, with only Level 3 Communications, Inc.’s $1 billion issue standing out, as it continued to lose ground

Elsewhere, the traders saw the market remaining mostly softer, although the easing was not as dramatic as Thursday’s downturn. Volumes were considered light.

© 2015 Prospect News.
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