Market continues to wait on Ascent; Exterran, Chobani expected for Thursday; tone better

By Paul Deckelman and Paul A. Harris

New York, March 28 – The high-yield dollar-denominated market remained in a holding pattern on Tuesday, its third consecutive session in which no pricings of any new U.S. dollar-denominated and fully junk-rated paper from domestic or industrialized country issuers was reported to have taken place.

The upcoming $1.5 billion two-part offering from energy operator Ascent Resources Utica Holdings, LLC continued to edge closer to fruition, with the roadshow for the five- and eight-year notes having wrapped up and expected pricing levels having widened from initial guidance.

Primaryside players meantime were looking forward to the back half of the week, when deals from issuers such as Exterran Corp., another energy-sector name, and from yogurt maker Chobani, LLC are expected to price, most likely on Thursday.

Away from the new-deal realm, traders saw a greatly improved tone in the secondary market, in line with improved stocks; equities moved sharply higher on Tuesday, as financial and energy shares surged on data showing consumer confidence in the United States soaring to a more than 16-year high.

Junk market traders said that most issues were heading for the upside, with market bellwether Frontier Communications Corp.’s bonds seen firmer in particularly active dealings.

Upside movement on decent-sized volume was also seen in some of the deals that priced last week, including BWAY Holding Co.’s two-part issue and, from the week before that, First Quantum Minerals Ltd.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.