Wednesday, January 28, 2009

New Issuance Fever Hits Market

The primary debt market has taken advantage of people throwing money into the TARP pit, with two high yield energy companies on deck to raise capital over the next few hours (or as long as there is an uptick to the market): Chesapeake, in the form of $500 million 6 year notes, and Inergy, raising $200 million 6 year notes, both to refinance existing debt. As mattress are overflowing with worthless pieces of paper, it is likely that both these issues will be quickly digested by the market... The desire to price these asap makes sense due to the high likelihood that tomorrow the market will crash and burn based on recently trading patterns (ed. this is not a recommendation to buy SPUs) Sphere: Related Content
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