Primary eyes Sept.; Sanchez Energy, California Resources on move; Husky Injection drops

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 21 – The domestic primary market remained dormant on Tuesday and is expected to stay that way through the end of August. However, September promises to be a big month for new issue activity, sources said.

While no dollar-denominated deals are on the active forward calendar, two Nordic deals from Teekay LNG Partners LP and WOW Air are in the works.

Meanwhile, the secondary space remained quiet with trading volume “extremely low,” a market source said.

“Low volume is the name of the game,” another source said.

Names in the energy sector remained active as the barrel price of West Texas intermediate crude oil for September delivery rose almost $1.

California Resources Corp.’s 8% senior secured second-lien notes due December 2022 were volume leaders on Tuesday with the notes gaining about 1 point.

Sanchez Energy Corp.’s junk bonds continued to rise alongside the broader energy sector with the notes up 2 points.

While the bonds have made gains over the past few days, they are still well below their levels prior to the release of the company’s second-quarter earnings report in early August.

Husky Injection Molding Systems Ltd.’s junk bond dropped about 7 points on Tuesday after the company reported disappointing earnings.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.