Primary ends week quietly though upcoming week seen busy; Endo falls on reduced guidance

By Paul Deckelman and Paul A. Harris

New York, May 6 – The high-yield primary sphere closed out the week on Friday on a quiet note.

Syndicate sources said that just one offering priced during the session – a smallish euro-denominated offering of five-year secured notes from chemical manufacturer Inovyn.

Meanwhile, the dollar-denominated junk market saw a second consecutive session in which no fully junk-rated dollar bonds from domestic or industrialized-country issuers priced – although sources said that in the week to come major investment banks could be shepherding as much as $10 billion in prospective new issues to market.

Among specific issues, Endo International plc’s bonds and shares were down sharply in heavy trading after the Irish pharmaceutical manufacturer released full-year guidance well below analysts’ expectations.

J.C. Penney Co. Inc.’s bonds followed its shares lower on news reports the department store retailer had sharply cut employee hours and had frozen overtime, among other measures to avoid missing its quarterly expense targets.

Statistical market performance measures were lower across the board for a fourth consecutive session on Friday; those losses followed three straight mixed sessions before that. Friday as the fifth such lower session in the last 10 trading days.

The indicators were also lower all around versus where they had closed out last week, after having been mixed the week before.

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