Primary again quiet, but calendar grows; new Heinz busy; Caesars slides on court ruling

By Paul Deckelman

New York, Jan. 28 – The high-yield primary market was quiet for a third consecutive session on Wednesday, with no new deals seen having priced in either the domestic dollar market or the Eurobond market, according to syndicate sources.

However, the forward calendar for both markets continued to grow.

Citgo Holding, Inc. was heard to be preparing for a roadshow, scheduled to start on Thursday, for a $1.5 billion offering of 5.5-year senior secured notes.

In the European bond market, meanwhile, Viridian Group FundCo II Ltd. was also heard to be getting ready to hit the road to market a €600 million offering of five-year senior secured notes.

For a second straight session, Monday’s megadeal from H.J. Heinz Co. was the busiest issue in Junkbondland. There was also robust activity in last week’s big deal from Endo International plc, whose notes continued to firm.

Away from the new deals, United States Steel Corp.’s bonds were solidly higher after reporting better-than-expected earnings. Sector peer AK Steel Holding Corp.’s bonds were better for a second day after posting better earnings.

Caesars Entertainment Corp.’s unsecured and second-lien notes were lower after a federal bankruptcy court judge ruled that its main operating division’s Chapter 11 case should be heard in Chicago rather than in Wilmington, Del.

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