Primary quiet as market returns from break; Chesapeake up on Williams deal; market firmer

By Paul Deckelman and Paul A. Harris

New York, Sept. 8 – It was back to work on Tuesday for junk market denizens following the Labor Day holiday break.

But with participants still straggling back to work after the long weekend, no new deals priced during the session, continuing the status quo – Junkbondland’s last dollar-denominated pricing activity was all the way back on Aug. 19.

However, the syndicate sources expect things to pick up shortly, with megadeals from familiar issuers like Frontier Communications Corp. and Dish Network Corp. expected to hit the market, possibly as early as Wednesday. Charter Communications Inc. is also seen waiting in the wings.

Berry Plastics Corp. LLC, which is scheduled to kick off a big bank debt financing with a lender meeting on Wednesday, is said to be readying a $700 million junk bond deal somewhere in the near term.

In the secondary market, traders said prices were mostly firmer, helped in part by a sizable rebound in stocks, which had fallen on Friday.

Chesapeake Energy Corp. was a standout performer, its bonds higher in active trading on the news that the oil and natural gas company had signed new gas-gathering agreements with Williams Cos. that will effectively lower Chesapeake’s unit costs at two of its main natural gas fields.

Statistical measures of junk market performance turned higher across the board on Tuesday for a second straight day.

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