Primary quiet; Tesla busy, better; Algeco active on asset sale; PetSmart problems persist

By Paul Deckelman and Paul A. Harris

New York, Aug. 22 – The high-yield primary market remained quiet on Tuesday, with no new dollar-denominated junk deals from domestic or industrialized-country issuers announced and a growing feeling on the part of participants that not much is likely to happen between now and the approaching Labor Day holiday in the United States.

Among recently priced issues, electric car manufacturer Tesla Inc.’s giant-sized eight-year offering remains the busiest credit, continuing to firm modestly from its recent low levels.

There was also some trading around in recent issues from car rental giant Hertz Corp. and from power generator Dynegy Inc.

Several of Dynegy’s existing issues were also seen generating some volume, all of it to the upside.

On the other hand, PetSmart Inc.’s several series of notes were all seen lower for at least a third straight session, despite a lack of fresh news about the specialty retailer.

Traders said the day’s most active issue belonged to Algeco Scotsman, a business services provider focused on modular space and secure storage solutions. It plans to sell its Williams Scotsman subsidiary and use some of the anticipated $1.1 billion of proceeds to repay debt.

Statistical market performance measures were higher across the board on Tuesday, strengthening after having been mixed for a second consecutive session and for the fourth time in five trading days on Monday.

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