Parker Drilling files for bankruptcy; United Rentals improves; Enbridge, Intelsat gain

By Paul A. Harris and Abigail W. Adams

Portland, Me., Dec. 12 – The domestic high-yield primary market remained dormant on Wednesday, a status that is expected to persist until the new year.

The rate hike expected when the Federal Reserve meets next week combined with weak market technicals is keeping potential issuers on the sidelines in December, sources said.

Meanwhile, the secondary space firmed on Wednesday with the market in general up about ¼ point.

A “risk on” sentiment returned to the market with the typical high-volume names, such as Intelsat SA, trading higher, a market source.

Enbridge Inc.’s 6¼% senior notes due 2078 saw a large bump on the heels of a dividend increase and news that a pipeline project in Michigan will move forward.

United Rentals Inc.’s 6½% senior notes due 2026, one of the last billion-dollar issues in 2018, improved after the company affirmed revenue and announced forward guidance that beat expectations.

Parker Drilling Co.’s junk bonds were in focus and making gains after the company filed a pre-packaged bankruptcy to restructure its debt.

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