Domestic primary on hold, activity seen in Europe; energy issues off as crude surge ends

By Paul Deckelman and Paul A. Harris

New York, July 5 – It was back to work in Junkbondland on Wednesday, following Tuesday’s Independence Day holiday break in the United States – but not very much was seen going on in the domestic dollar-denominated primary market, which saw its third consecutive shutout, in terms of no new deals pricing.

But there was activity in the non-dollar part of the market, including the pricing of euro-denominated deals from Italy’s Kedrion SpA and Germany’s Hapag-Lloyd AG.

Also in Europe, participants looked forward to a likely pricing on Thursday from Germany’s Kloeckner Pentaplast.

There was some dollar-market news – out of Europe, though, with British prospective issuer McLaren Automotive heard to be shopping around a dollar-denominated tranche of five-year secured notes, as part of a two-part offering that will also include a tranche of euro-denominated paper.

Back among domestic names, traders saw a fair amount of volume in some of last week’s newly priced issues, including VeriSign, Inc. and Venator Materials plc.

Trading was generally light in new or recently priced names, with results mixed.

However energy credits – including last week’s new deal from Carrizo Oil & Gas, Inc. as well as established issues from the likes of California Resources Corp., Chesapeake Energy Corp. and EP Energy Corp. – were all seen lower on the day, amid the abrupt end to what had previously been an eight-session surge in world crude oil prices.

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