New Cedar Fair, recent Ultra Petroleum, Alliance take; oil, health care tight

By Colin Hanner and Paul A. Harris

Chicago, April 10 – There was overwhelming quiet in the high-yield secondary market on Monday, traders said, with recently-priced deals getting the bulk of attention.

“[The high-yield market] is grinding higher,” a trader said. “But like I said, there’s not a lot of notable volume.

“The new [Ultra Petroleum Corp.] and Cedar Fair [LP] deal were the two main things, if anything, that were trading.”

Cedar Fair’s $500 million of 10-year senior notes was the only issue priced Monday.

Another trader said that Monday’s action would likely be the peak of the week, as the Passover holiday, paired with the Easter holiday and late spring vacations, would likely mean a lack of activity for the remainder of the week. Markets will be closed on Friday for Good Friday.

Oil and natural gas operator Ultra Petroleum Corp., which priced $1.2 billion in two regularly scheduled tranches on Friday, was “marginally higher” on the session, a trader said.

And Sandusky, Ohio-based regional amusement-resort operator Cedar Fair LP, which priced a $500 million issue of 10-year senior notes on Monday, was up later in the day.

Though crude oil futures continue to gain, exploration and production companies were largely unaffected by such movement, trading nearly flat in some cases.

Health care and retail sectors were mixed on the session.

Most other issues were trading tight, not going much wider than Phoenix-based pet retailer Petsmart, Inc.’s, which had “heavy volume,” according to a trader.

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