Europe dominates primary as Kloeckner, CMC price; CMA CGM upsizes; Intelsat busy

By Paul Deckelman and Paul A. Harris

New York, July 6 – The domestic dollar-denominated high-yield primary market continued its early-summer siesta on Thursday, with no issues seen even being actively marketed, let alone having priced. It was the fourth straight session of inactivity.

But in the absence of dollar-market activity, the European high-yield market continued to hold center stage.

German plastics packaging manufacturer Kloeckner Pentaplast brought a €395 million issue of six-year PIK toggle notes to market.

Italian civil engineering company CMC di Ravenna meantime priced €250 million of five year notes.

The European primary sources said French container-ship operator CMA CGM SA upsized its five year note offering and set yield talk as it wrapped up the roadshow for its deal, meaning a Friday pricing is a possibility.

Back in the domestic market, traders said that flows remained light.

Recently priced new issues were mostly quiet. Intelsat Jackson Holdings SA’s eight-year megadeal and j2 Cloud Services, LLC’s eight-year notes were the only recent issues to crack Thursday’s Most Actives list. Other Intelsat paper was also involved in respectably busy trading.

Statistical market performance measures were lower across the board for a second consecutive session on Thursday.

Another numerical indicator – flows of investor cash into or out of high-yield mutual funds and exchange-traded funds – fell deeper into the red this week, as $1.16 billion left those funds.

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