Primary quiet, though American Energy – Permian on tap; new AerCap keeps firming in active trading

By Paul Deckelman and Paul A. Harris

New York, Oct. 19 –The high-yield primary market opened on a quiet note on Monday, with no new issues pricing during the session.

However syndicate sources said that oil and natural gas operator American Energy – Permian Basin, LLC is expected to price a $560 million secured offering on Tuesday. However, the company’s existing paper was off on the expected structural subordination that the new deal will bring.

The sources meantime reported that price talk had surfaced on medical device company Greatbatch Ltd.’s new deal, with pricing of that $360 million unsecured offering also seen likely on Tuesday.

Among recently priced issues, AerCap Holdings NV’s new five-year notes were up solidly on busy volume for a second consecutive session following their pricing on Friday.

Valeant Pharmaceuticals International, Inc.’s bonds traded busily, 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 quarterly profits it reported.

Statistical measures of junk market performance were higher across the board on Monday for a second consecutive session; they had turned higher on Friday, after having been mixed on Thursday and lower all around on Wednesday. Monday’s advance was its fourth in the last eight trading days.

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