Post-holiday primary remains quiet as market activity resumes; Yum! shops megadeal, CVR slates

By Paul Deckelman and Paul A. Harris

New York, May 31 – It was back to work in Junkbondland on Tuesday after the extended Memorial Day holiday weekend, which saw fixed-income markets in the United States closed on Monday.

But market participants reported that things were pretty quiet on the final session of May, as people spent much of the day just getting re-acclimated after the holiday break.

As had been the case on Friday, no new deals were priced Tuesday, the second straight quiet session after last week’s eye-popping $11.2 billion of new issuance in 20 tranches.

Syndicate sources did indicate that Yum! Brands, Inc. was marketing the prospective $2.3 billion of eight-and 10-year notes that the giant operator and franchisor of such well-known fast-food chains as KFC, Taco Bell and Pizza Hut had announced on Friday; they said the deal was being pitched to would-be investors via a Tuesday group lunch presentation and global conference call, with pricing expected later this week.

Nitrogen fertilizer producer CVR Partners LP meantime was heard to have hit the road to sell $625 million of new secured notes in a deal that is also expected to price towards the end of the week.

In the secondary realm, traders reported a generally quiet session, although there was some noticeable activity in such credits as Teck Resources Ltd., Hertz Equipment Rental Corp. and TransDigm Inc., all of which priced during last week’s seemingly non-stop bond barrage.

Away from the new deals, active energy names included California Resources Corp. and Continental Resources Inc.

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