LeasePlan shelves megadeal amid market volatility; most junk lower; funds lose $1.05 billion

By Paul Deckelman and Paul A. Harris

New York, Feb. 11 – The ongoing volatility in the capital markets claimed a victim in Junkbondland on Thursday, with syndicate sources saying that Dutch vehicle-leasing company LeasePlan Corp. NV had postponed its planned €1.55 billion three-part dual-currency bond offering, a deal that included a dollar-denominated tranche of five-year notes.

No deals were heard to have priced.

The sources also said that Canadian media company Corus Entertainment Inc. was getting ready to hit the road to market a planned Canadian dollar-denominated seven-year issue.

With oil prices continuing their slide, traders said that energy names were in the forefront of the decliners, including California Resources Corp., Chesapeake Energy Corp. and Energy XXI Gulf Coast, Inc.

The split-rated oil and natural gas and mining concern Freeport McMoRan Co. Inc. dominated the Most Actives list, with most of its issues losing multiple points on the day.

Statistical measures of junk market performance turned lower across the board on Thursday after having been mixed on both Tuesday and Wednesday. It was the indicators’ second lower session in the last four trading days.

Another numerical gauge – flows of investor cash into or out of high-yield mutual funds and exchange-traded funds, considered a reliable barometer of overall junk market liquidity trends – continued on its mostly negative trend for the year so far, posting a $1.048 billion outflow.

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