Junk sees improved tone, helped by better stocks, oil prices; Valeant up; Denbury down

By Paul Deckelman and Paul A. Harris

New York, Dec. 22 – The high-yield market saw an improved tone on Tuesday, traders said.

They said market sentiment was helped by strength in equities and an upturn in domestic crude oil prices.

The stronger oil prices helped energy names such as EP Energy Corp., Transocean Ltd., PetroQuest Energy, Inc., Whiting Petroleum Corp. and energy and mining concern Teck Resources Ltd.

However, not everyone went along for the upside ride; energy downsiders included California Resources Corp. and Denbury Resources Inc., the latter credit down as the energy and production operator announced a discount-priced exchange offer for several series of its existing bonds.

Away from the energy names, Valeant Pharmaceuticals International, Inc.’s notes were better in busy trading.

The primary market remained in its late-year snooze mode as far as deals actively circulating or having priced, although syndicate sources did hear that Western Refining Inc. will either use bank loans or capital markets debt to help fund a pending acquisition.

Statistical measures of junk market performance turned higher across the board on Tuesday after having been mixed on Monday and lower all around on Thursday and again on Friday. Including the two straight higher sessions before that, Tuesday was the third higher session in the last six trading days.

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