No primary pricings, though Albertsons, Ultra Petroleum join September slate; Momentive moves

By Paul Deckelman and Paul A. Harris

New York, Aug. 25 – The high-yield primary went into its second week without any deals having priced on Monday as the traditional late-summer lull continued.

However, market sources indicated that supermarket giant Albertsons LLC’s planned $1.625 billion secured bond deal partly financing its acquisition of sector peer Safeway Inc. – heretofore considered to be out on the horizon somewhere – is now likely to come to market in September.

And they said that energy operator Ultra Petroleum Corp.’s $700 million note offering funding its acquisition of some oil and natural gas assets is also likely to price in September.

But that having been said – and even though other deals have been mentioned as probable September business – some of the sources, who were making optimistic projections of a fast and voluminous start to post-Labor Day pricings and a super-busy September with as much as $40 billion of new paper possible, were heard to have moderated their forecasts somewhat.

In the secondary market, Momentive Performance Materials Inc.’s bonds were again among the busiest issues in Junkbondland – and again were seen on the downside – amid a new delay in resolution of a legal standoff between the bankrupt maker of silicon and other specialty industrial materials and some of its bondholders.

Dynegy Inc. bonds were seen still “hanging in” near the levels at which they finished on Friday, when the company’s paper eased after it announced plans to bring some $5 billion of new bonds to market.

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