Primary stays quiet as Glentel slates; extra busy Momentive rebounds as judge OKs plan

By Paul Deckelman and Paul A. Harris

New York, Aug. 27 – It was another quiet day in the primary sphere on Wednesday, continuing the traditional late-August lull.

Syndicate sources heard of only one actual new-deal announcement: Glentel Inc.’s plans to bring C$200 million of five-year notes to market early next month.

In the secondary arena, traders saw a fall-off in activity in Burger King Worldwide Inc.’s bonds, which had been among the busiest junk credits on Tuesday in the aftermath of the company’s Monday announcement of its plans to acquire Tim Hortons Inc., funding the purchase with a huge new bond issue and an even bigger bank debt deal.

But there was no falling off in trading in Momentive Performance Materials, Inc.’s bonds, which were the busiest credits in Junkbondland for a fourth consecutive day. If anything, action in the name intensified after a federal bankruptcy judge gave conditional approval to the firm’s reorganization plan. Those bonds – down sharply Tuesday after the jurist quashed an effort by holders to win a special make-whole interest payment from the company – regained some of their lost ground on Wednesday.

Overall activity in the secondary market remained mostly quiet, apart from “story” bonds like Momentive.

Statistical market performance indicators remained mixed on Wednesday for a second straight session and their fifth session in the last six.

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