Quiet session leads market into holiday; Europe’s Lindorff prices first deal in weeks

By Paul Deckelman and Paul A. Harris

New York, Sept. 4 – As widely expected, Junkbondland headed into the Labor Day holiday weekend on Friday with a quiet and abbreviated session. Trading desks were lightly staffed, with many market participants making an early day of it. The junk market will be closed on Monday.

Primaryside sources did note that the first junk deal to price in several weeks got done, as Norway-based financial information services provider Lindorff Group AB brought an upsized €230 million two-part offering of add-on notes to its existing secured floating-rate notes due in 2020 and fixed-rate secured notes due 2021 to market.

That euro-denominated deal was the first junk pricing seen since Aug. 19, when KIK Custom Products Inc. did a $390 million issue of eight-year senior notes.

The syndicate sources were meantime anticipating what is expected to be a robust post-holiday pricing environment for prospective new deals from issuers like Frontier Communications Corp., Charter Communications Inc. and Dish Network Corp., to name just three.

In the secondary market, traders saw little in the way of real price moves or volume – most names were either unchanged or were up or down by perhaps 1/8 to ¼ point. Statistical measures of junk market performance turned mixed on Friday after having been higher across the board on Wednesday and again on Thursday after a downside session on Tuesday.

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