No pricings as primary closes $1.27 billion week; recent deals quiet, energy spirals downward

By Paul Deckelman and Paul A. Harris

New York, Aug. 21 –The high-yield primary market put up its second goose-egg in a row on Friday, with no new-deal announcements and no pricing seen on any of the deals which have been hanging around the junk pipeline.

The lack of any new dealings on either Thursday or Friday left the week’s tally of dollar-denominated and fully junk rated paper right where it had been at the close Wednesday, with some $1.27 billion having come to market in three tranches, all of it on Tuesday and Wednesday.

The inactivity seen over the past two days is expected to hold for at least the next two weeks in the run-up to the Labor Day holiday break, according to syndicate sources.

Overall the junk market was weaker on Friday, taking its cue from stocks, which plunged badly on Friday to close out their worst week in four years.

There was relatively little trading seen among the deals which priced earlier this week, which had traded actively when they came to market and perhaps the session after that.

Away from the new deals, oil and natural gas credits such as SandRidge Energy Inc., Calfrac Well Services Ltd. and California Resources Corp. traded off, in line with continued faltering crude oil price, which sagged below $40 per barrel for the first time in six years.

Statistical market performance measures meantime fell for their fourth consecutive session on Friday and were lower all around from where they had been the previous Friday for a third straight week.

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