Belden brings only high-yield issue; Verallia adds to calendar; secondary market mixed

By Paul A. Harris and Stephanie N. Rotondo

Seattle, Oct. 4 – The U.S. high-yield bond market primary continued to be quiet on Tuesday, with the European space taking the lead.

Belden Inc. brought the day’s only new issue, a €200 million issue of senior subordinated notes due 2026 (BB-) at par to yield 4 1/8%.

There was once again a wishy-washy nature in the secondary high-yield bond market on Tuesday.

For instance, the Markit Series 27 CDX index traded off almost a quarter of a point to 104.04 bid, 104.10 offered. However, the KDP High Yield index improved to 71 from 70.9 on Monday.

The yield tightened to 5.2% from 5.22%.

As for the day’s dealings, fresh news was helping Concordia International Corp. bonds head higher.

On Monday, it was reported that the Canadian pharmaceutical company was in talks for a potential equity stake. The discussions are being considered, as talks regarding a leveraged buyout have not gotten anywhere.

Continental Resources Inc. was also firming up after the Oklahoma City-based oil and gas producer called $600 million of notes.

Elsewhere in oil and gas, bonds traded mixed in line with the broader market. For its part, domestic crude oil ended slightly better on the day, though it was weak for most of the session.

A trader saw Chesapeake Energy Corp.’s 8% second-lien notes due 2022 sliding almost half a point to 101 1/8, while California Resources Corp.’s 8% second-lien notes due 2022 gained a point to close at 68½.

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