Primary holiday continues, recent deals busier; Tronox rises; Aleris quiet despite news

By Paul Deckelman and Paul A. Harris

New York, Aug. 29 – The high yield market opened the August-to-September crossover week on Monday – the final week before the Labor Day holiday – pretty much the same way it had closed out last week, with primary activity still in a holding pattern, and likely to remain so until after the holiday break.

There was a mild upturn seen in trading volumes in some of the recently priced new deals that have come to market, particularly in the cash-interest bonds that American Media, Inc. priced as part of its two-part private placement last week – the sole deal to have gotten done that week in Junkbondland.

There was also a fair amount of activity seen in names such as Novelis Corp. and Diamond Resorts International, Inc., which were among the transactions that got done the week before.

The recent deals were seen mostly firmer on the day, in line with an overall better tone in the market.

Away from the new-deal sphere, chemical pigments producer Tronox Ltd.’s bonds were among the more actively traded junk issues, moving up on the session perhaps on the back of its recent announcement of higher prices for its products.

There was merger and acquisition news out on Aleris Corp., which is being bought by China’s Zhongwang USA LLC entity in a $2.3 billion deal that includes debt assumption, but initial reaction in Aleris’ bonds was quiet.

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