No post-holiday pricings to open September, but Ultra Pete seen on tap; Bombardier lower

By Paul Deckelman and Paul A. Harris

New York, Sept. 2 – September began on Tuesday in Junkbondland quietly, with no new deals seen having priced for an 11th consecutive session.

However, syndicate sources said that Ultra Petroleum Corp. is expected to price its previously announced $700 million offering of 10-year notes on Wednesday, following a morning investor call.

Meanwhile Endeavour International Corp. announced late in the day that is electing not to make Tuesday’s scheduled interest payment on two issues of 2018 junk bonds and one issue of 2017 convertible notes, although there was little immediate junk market reaction to the news.

A considerably more active name in the junk market on Tuesday was Bombardier Inc., whose bonds eased in tandem with its shares after a Goldman Sachs equity analyst reiterated his previous “sell” recommendation on the stock and cut his price target, warning of more delays in the testing and eventual rollout of the company’s latest generation of passenger airliner.

Toys ‘R’ Us Inc.’s bonds were seen doing better, with investors apparently looking beyond the wider loss it recently reported in its latest quarter, and instead taking heart from improved sales figures.

But overall, traders reported low activity, theorizing that many market participants were just now straggling back in after the three-day weekend.

Statistical market performance indicators were seen mixed for a sixth consecutive session.

© 2015 Prospect News.
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