Consolidated brings floaters, new fixed notes firm; Atwood jumps on buyout; oil bonds off

By Paul Deckelman and Paul A. Harris

New York, May 30 – It was back to work on Tuesday in Junkbondland, as the high-yield market re-opened after the long Memorial Day holiday weekend, which had included an abbreviated session on Friday and a full market close on Monday.

Primaryside players said that one new deal came to market, from Consolidated Energy Ltd., which priced a $300 million issue of five-year floating-rate notes – the second half of a two-part offering whose other half had gotten done on Friday.

Secondary market traders saw that part of the alternative waste management services and energy production company’s new deal – $500 million of eight-year fixed-rate notes – trade up solidly from the slight discount at which that paper had priced, although they said that volume in the new deal was fairly light.

Elsewhere in the new-issue market, prospective deals from Taseko Mines Ltd. and Nokia Corp. popped up on the radar screens.

Amid a mostly quiet post-holiday session, traders saw some activity in recent offerings from PetSmart Inc., Chesapeake Energy Corp. and NOVA Chemicals Corp.

But the real focus in the secondary realm was on Atwood Oceanics Inc., whose bonds jumped by more than a dozen points in heavy trading on the news that Ensco plc will acquire the offshore oilfield services company.

Statistical market performance measures were mixed for a third straight session on Tuesday; they had turned mixed on Thursday and stayed that way on Friday.

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