Wynn, GenOn, New Gold lead $2.15 billion session; oil names slide; funds down $386 million

By Paul Deckelman and Paul A. Harris

New York, May 4 – The high-yield primary arena saw a burst of activity on Thursday as $2.15 billion of dollar-denominated and fully junk-rated paper from domestic or industrialized-country borrowers came to market in four tranches.

Gaming operator Wynn Resorts Ltd. had the big deal of the day, pricing a quickly shopped $900 million of 10-year notes.

Also driving by during the session were power producer GenOn Energy Inc., with an upsized $550 million of five-year first-lien secured paper, and Canadian metals miner New Gold Inc., which brought $300 million of eight-year notes to market.

Traders said the New Gold notes firmed smartly in busy trading when they hit the aftermarket.

GenOn’s existing notes set to come due next month – which are to be redeemed using the proceeds from the bond deal – soared in heavy trading although some of the company’s other paper was in retreat, also on very active volume.

Away from the new issues, energy credits like California Resources Corp. and Oasis Petroleum Inc. were sharply lower in active dealings as world crude oil prices slid more than $2 per barrel on market concerns about oversupply of petroleum.

Another numerical indicator – the flow of investor cash into or out of high-yield mutual funds and exchange-traded funds – returned to the downside in the latest reporting week, posting a $386 million outflow.

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