Primary quiet to open pre-holiday week, Avison Young deal possible yet; Noble loses ground

By Paul Deckelman and Paul A. Harris

New York, Dec.19 – The high yield primary market stayed quiet on Monday, with no new U.S. dollar-denominated and fully junk-rated deals from domestic or industrialized-country borrowers heard to have priced during the session, the same as Friday.

With the end-of-year holidays fast approaching, the consensus in Junkbondland seems to be that new-issue activity for the year is for all intents and purposes over, with a rapidly closing window of opportunity for any opportunistically timed drive-by offerings that issuers may still be planning.

Syndicate sources said that one deal remains on the forward calendar for possible pricing this week – a $130 million offering of five-year secured notes from Canadian real estate company Avison Young (Canada) Inc.

Traders meanwhile saw some activity in some of the recently priced issues that came to market last week, including Noble Holding International Ltd.’s new 2024 bonds; the issue has struggled from the get-go in the aftermarket since pricing at a discount this past Wednesday and continues to retreat.

They also saw a fair amount of trading in such other recent entries as Tesoro Corp., Diamondback Energy, Inc. and Gulfport EnergyCorp.

Statistical market performance measures were mixed for a third consecutive session on Monday; they had turned mixed on Thursday and then stayed that way on Friday and again on Monday. Before that, they had been lower on Wednesday – their first negative session this month – and higher across the board last Tuesday.

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