U.S. primary sees year’s first empty week; CGA CGM, RAC price in Europe; oil slide hits energy

By Paul Deckelman and Paul A. Harris

New York, July 7 – The high-yield market ended the first week of July on Friday with no new dollar-denominated and fully junk-rated paper from domestic or industrialized-country borrowers having priced – the first empty week in Junkbondland since the end of last year.

As has been the case for most of the holiday-shortened week, the non-dollar European primary market was where the action was on Friday, with a pair of deals pricing – a twice-upsized €650 million offering of five-year notes from French container-ship company CMA CGM SA and a £250 million five-year offering from RAC Group, a British provider of motorist services.

But both the European and U.S. junk markets also saw planned deals shelved on Friday – Antalis International postponing its €325 million offering of seven-year senior secured notes due to market conditions and Global Ship Lease, Inc. likewise suspending its $400 million offering of five-year senior secured notes, which was to have refinanced an existing debt issue.

Away from the new issues, oil and gas credits and oilfield services companies saw sizable losses in line with a renewed slide Friday in world crude oil prices. Among the bigger losers were familiar sector names such as exploration and production operators California Resources Corp., Chesapeake Energy and driller Transocean Ltd.

Statistical market performance measures were mixed on Friday.

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