U.S. Steel notes pop after tender results; new issues from Frontier start to climb again

By James McCandless and Paul A. Harris

San Antonio, March 20 – Traders reported a mild day in the high-yield secondary market, as newer issues continued to dominate.

U.S. Steel Corp.’s new issue popped up as the company announced the results of a tender offer Tuesday.

New issues from Frontier Communications Corp. had a day of respite after days of downward pressure.

WellCare Health Plans, Inc. new paper saw another active day after Monday news that investment firm Blackrock had increased its ownership position.

Intelsat SA and Northern Oil and Gas, Inc. provided much of the day’s volume.

The dollar-denominated primary market remained dormant on Tuesday.

However new issue business is expected before the close of the week, a syndicate banker said, adding that a deal could materialize so long as conditions in the capital markets remain reasonably supportive, as they were on Tuesday.

Although the dollar-denominated primary market has remained quiet since the beginning of the week, the European new issue market has generated news.

Chicago-based LKQ Corp. started a roadshow on Monday for a €1 billion two-part offering of senior notes.

Italy-based TeamSystem Holding SpA is expected to price €750 million of senior secured floating-rate notes in two tranches on Thursday.

Travel and tourism company TUI AG is in the market with €400 million of seven-year notes.

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