AerCap parachutes in with upsized $1 billion deal, new bonds fly; Valeant, oils, Wynn all rebound

By Paul Deckelman and Paul A. Harris

New York, Oct. 16 – Junkbondland saw its first new deal in more than a week on Friday – and what a deal it was.

Netherlands-based aircraft leasing company AerCap Holdings NV made an unscheduled landing, bringing an opportunistically timed and sharply upsized $1 billion offering of five-year notes to market.

It was the first new deal the primaryside had seen since last Wednesday, when lawn-care products maker Scotts Miracle-Gro Co. did an upsized $400 million issue of eight-year notes.

After the new AerCap bonds priced, investors saw them zoom skyward, adding more than 1 point in heavy trading.

Away from the new deals, traders reported an overall better market tone, citing the robust flows of investor cash, as illustrated by the inflows seen by dedicated mutual funds and exchange-traded funds

That better tone even helped to lift bonds which had been seen down on Thursday, including Valeant Pharmaceuticals International Inc., various energy related credits such as California Resources Corp., and Wynn Resorts, Ltd.

Statistical measures of junk market performance turned higher across the board on Friday after having been mixed on Thursday and lower all around on Wednesday; it was the third higher session in the last seven trading days.

The indicators were also universally higher versus where they had finished last Friday – their second consecutive week-over-week gain, and third such stronger week out of the last six and fourth such better week out of the last eight.

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