Junk primary quiets; bonds weak again; steel stays in focus; Frontier, Cablevision rebound

By Paul A. Harris and Stephanie N. Rotondo

Portland, Ore., Sept. 23 – No new issues priced in the dollar-denominated high-yield market on Wednesday, though Beacon Roofing Supply Inc. released and then tightened talk on its $300 million of eight-year notes.

Talk is now 6 3/8% to 6½%, revised from the 6½% to 6¾% official yield talk that circulated Wednesday morning.

Over in the European market, Arrow Global Finance plc priced a €110 million add-on to its Euribor plus 525 bps floating-rate notes due 2021 at par.

The secondary high-yield space continued to be on the softer side, though sources were mixed on just how much.

And even with the generally weaker tone, “some stuff that got whacked yesterday [amid a broader market sell-off] came back” in midweek trading, according to one trader.

The trader also noted that volume was lower given that “a good part of our trading brethren were out” for the Yom Kippur holiday.

In the world of commodities, AK Steel Holdings Corp. traded all over the place following the previous day’s declines. Sector peer Arcelor Mittal was meantime seen ending lower.

In the telecommunications space, Frontier Communications Corp.’s recently priced $6.6 billion three-part issue staged a comeback, as did Cablevision Systems Corp.

“Even iHeart [Media Inc.] bounced today,” a trader reported.

But on the down side of things, Intelsat SA bonds were coming in after it was reported that the company had hired advisers to explore potential asset sales.

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