Primary remains quiet; Mark Andy on the road; Telecom Italia trades down; Mattel gains

By Abigail W. Adams

Portland, Me., May 30 – The domestic and European high-yield primary market remained quiet on Wednesday as markets firmed amid continued uncertainty surrounding political tensions in Italy and Spain.

New issue volume is expected to remain light for the rest of the week as potential issuers remain on the sidelines where they wait to see how markets respond to political developments in Europe.

However, one issuer did step forward to market a deal. MAI Holdings Inc., doing business as Mark Andy, began a roadshow for a $135 million offering of five-year senior secured notes on Wednesday with pricing expected in the middle of the June 11 week, according to a market source.

Meanwhile, the secondary market firmed on Wednesday with on-the-run names up generically about ¼ point early in the session.

The energy and telecommunications sector saw gains on Wednesday. California Resources Corp.’s 8% senior notes due 2022 were again in focus and gained 2 points as the barrel price of West Texas intermediate crude oil rebounded.

While the telecommunications sector was up in general, Telecom Italia’s 6 3/8% senior notes due 2033 were down. The notes lost another point after losing 10 points in a month, which sources attributed to the political instability in Italy.

Mattel, Inc.’s 6¾% senior notes due 2025 (B1/BB-/BB) were up about 1 point in active trading in the secondary space after a recently priced add on.

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