European primary sees activity; Tesla, other recent deals busy; funds lose $277 million

By Paul Deckelman and Paul A. Harris

New York, Aug. 31 – As expected, the domestic primary market continued its summertime snooze on Thursday, with no activity anticipated until after the upcoming Labor Day holiday break in the United States.

But syndicate sources said there was some life seen in the European high-yield market as Swedish commercial and residential property developer Fastighets AB Balder brought an issue of long-maturity hybrid securities to market.

And they heard tanker and cargo-ship company Stolt-Nielsen Ltd. getting ready to shop around to investors a five-year issue of bonds denominated in either dollars or Norwegian kroner.

Back on the domestic scene, electric car manufacturer Tesla, Inc.’s recently priced eight-year issue continued to attract considerable investor attention, moving up on the session.

And traders said that a number of other recently priced issues – which had lately been little seen – were once again trading around on Thursday, including names such as Post Holdings, Inc., Diamond Offshore Drilling, Inc., Staples, Inc. and Restaurant Brands International Inc.

Away from the new deals, strengthening crude oil prices helped to push up energy names such as California Resources Corp.

Statistical market performance measures were trending higher on Thursday, their second straight upside session.

But flows of investor cash into or out of high-yield mutual funds and exchange-traded funds fell for a third consecutive week, according to numbers released on Thursday, as $277 million left those funds.

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