Valeant bonds firmer after earnings though loans retreat; oils steady despite crude slide

By Paul Deckelman

New York, Oct. 19 – Valeant Pharmaceuticals International, Inc.’s bonds traded busily on Monday, seen unchanged to firmer as investors apparently ignored all of the negative noise surrounding the Canadian specialty drug manufacturer’s pricing policies and focused instead on the better-than-expected quarterly profits it reported as well as its optimistic fourth-quarter and full-year earnings and revenue projections.

Valeant’s term loans C, D and E, however, moved lower, as did the company’s shares.

Elsewhere, traders saw bonds of oil and gas names such as Linn Energy LLC, California Resources Corp. and Chesapeake Energy Corp. unchanged to better despite a big drop in oil prices.

Back in the bank debt market, Weight Watchers International Inc.’s term loans headed higher with news of an equity investment by Oprah Winfrey.

Convertibles traders meantime said that PTC Therapeutics Inc.’s converts slid by multiple points on an outright basis on Monday as the common shares of the South Plainfield, N.J.-based pharmaceutical company fell sharply in what amounted to a delayed reaction to disappointing drug trial data that rocked investors overnight Thursday.

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