Valeant, American Axle, Charter lead year’s biggest day so far; funds plunge $2.12 billion

By Paul Deckelman and Paul A. Harris

New York, March 9– The junk bond juggernaut continued to roll unstoppably on Thursday, notching a new mark for heaviest new-issuance session of the year for the second time in three trading days.

When the dust had settled, an incredible $6.64 billion of new U.S. dollar-denominated and fully junk-rated paper from domestic or industrialized country borrowers had come to market.

It was also the biggest day Junkbondland’s primary had seen since last June, according to data compiled by Prospect News.

A trio of megadeal-sized transactions north of $1 billion paced the day’s frantic new-deal activity, led by Canadian drug manufacturer Valeant Pharmaceuticals International Inc.’s upsized $3.25 billion two-part bond behemoth.

Automotive drive-train components maker American Axle & Manufacturing Inc. also did a two-part offering totaling $1.2 billion of eight-and 10-year notes.

Cable and broadband provider Charter Communications, Inc. priced a $1 billion-add-on to its existing 2027 notes.

Statistical market performance measures were lower across the board for a fourth consecutive session on Thursday.

Meanwhile flows of investor cash into or out of high-yield mutual funds and exchange-traded funds moved deeper into negative territory as $2.119 billion more left those weekly reporting-only domestic funds in the form of investor redemptions than came into them during the week ended Wednesday.

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