Upsized Level 3 drives by, trades busily, GameStop retreats; energy, iron-ore credits down

By Paul Deckelman and Paul A. Harris

New York, March 8 – After a one-day break, the high yield primary sphere saw a sizable new deal from a familiar junk bond issuer get done on Tuesday, as telecommunications network operator Level 3 priced an upsized $775 million issue of 10-year notes.

Traders saw the new bonds quickly shoot right to the top of the day’s Most Actives list, although it was up only modestly from its issue price.

Among other recently priced offerings, there was brisk trading volume in the new deals from GameStop Corp., Solera LLC and HCA Inc., with the GameStop issue seen notably lower.

Away from the issues which have actually priced, syndicate sources heard TRAC Intermodal LLC’s $485 million secured deal hitting the road for marketing to potential investors, with pricing likely later in the week.

Outside of the new-deal world, oil and natural gas issues such as Continental Resources, Inc. and Chesapeake Energy Corp. gave up the hefty gains they posted on Monday, as did iron-ore miner FMG Resources.

Statistical market performance measures turned lower all around on Tuesday – their first negative session after having been higher across the board for eight consecutive trading days before that.

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