European junk market busy; domestic sphere ends August quietly; Freeport-McMoRan paper off

By Paul Deckelman and Paul A. Harris

New York, Aug. 31 – The high-yield market on Wednesday was really a tale of two markets as it closed out the month of August.

The domestic dollar-denominated arena remained deadly dull ahead of the rapidly approaching extended Labor Day holiday break in the United States. It was quite a different story in the European theater.

British financial services company Arrow Global Finance plc was heard by syndicate sources to have begun shopping around a £220 million offering of eight-year senior secured notes, with pricing seen likely by the end of the week.

And Italian oilfield services provider Saipem SpA was seen bringing an offering of either five-year or seven-year euro-denominated notes or possibly both.

Back in the mostly sleepy dollar-denominated realm, traders saw Freeport-McMoRan Inc.’s paper mostly lower, some on active volume.

Among the negative factors seen hurting those bonds were a slide in world crude oil prices and news of an accident at a Freeport-run copper mine in Chile that forced a suspension of operations there.

Not much else was seen really shaking during the session. There was only very light volume in recently priced deals such as Tallgrass Energy Partners, LP, National CineMedia, LLC, Boise Cascade Co. and MGM Resorts International. All but the latter deal were seen hanging on to solid aftermarket gains they had notched when they began trading following their respective pricings.

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