Primary comes alive as T-Mobile Frontier, Gannett lead $5.8 billion day; Endeavour lower

By Paul Deckelman and Paul A. Harris

New York, Sept. 3 – The late-summer drought in the high-yield primary market ended on Wednesday, as syndicate sources saw some $5.84 billion of new U.S. dollar-denominated, fully junk-rated paper price.

Frontier Communications Corp. priced $1.55 billion of new notes, evenly split into seven- and 10-year tranches, while Gannett Co., Inc. brought $675 million of new notes, unevenly split into seven- and 10-year pieces.

On Wednesday after the market close, T-Mobile US, Inc. announced partial terms on its two-part offering, which had been upsized to a gigantic $3 billion from $2 billion originally.

There was also a pair of smaller deals, as WPX Energy, Inc. came along with $500 million of 10-year notes, while Summit Materials, LLC did a $115 million add-on to its existing 2020 notes.

Only the new Gannett and WPX notes priced in time for any kind of aftermarket, traders said, with both quoted somewhat firmer.

Away from the new deals, traders saw considerable activity in Endeavour International Corp.’s bonds, which were lower following the late-Tuesday announcement that the energy operator chose not to make the scheduled Sept. 2 interest payment on several series of junk and convertible bonds.

Statistical market performance indicators turned lower across the board after having been mixed for six consecutive sessions before that.

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