Lamar drives by with 10-year, new bonds firm; market gyrates, ends mixed as crude falls

By Paul Deckelman and Paul A. Harris

New York, Jan. 25 – The high yield primary sphere continued its recent burst of activity on Monday, pricing its third new deal in as many sessions, as Lamar Advertising Co. came to market with a quickly shopped $400 million offering of 10-year notes.

Traders said that the Baton Rouge, La.-based billboard company’s new issue firmed smartly when it hit the aftermarket, moving up between 1 and 2 points from its issue price.

They meanwhile saw continued firmness in the trading levels for two new deals done last week: packaged foods producer TreeHouse Foods Inc.’s $775 million of eight-year notes and specialty construction chemicals and building materials maker GCP Applied Technologies Inc.’ $525 million of seven-year paper, with the latter being the day’s busiest issue in Junkbondland.

Away from new deals, the market was mixed – early softness gave way to later firmness – which itself was undermined later as equities nosedived, in line with the latest falling crude oil prices.

The latter, though, did not have the broad negative impact seen last week.

While some energy credits, such as California Resources Corp., were lower, others, such as Oasis Petroleum Inc., held their own.

But Sand Ridge Energy Inc.’s bonds slid after the company said it maxed out a credit line to shore up liquidity.

Statistical measures of junk market performance turned mixed on Monday, after having been higher across the board on Thursday and again on Friday.

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