Avolon leads primary steamroller, Delphi, iStar, Tronox also price; funds lose $96 million

By Paul Deckelman and Paul A. Harris

New York, Sept. 14 – The junk bond juggernaut rolled unstoppably on during Thursday’s session, with four issuers pricing some $3.3 billion of new U.S. dollar-denominated and fully high yield-rated paper in six tranches in what is shaping up to be one of the biggest primary arena weeks of the year.

International aviation leasing company Avolon Holdings Ltd. brought the biggest deal of the day to market, an upsized $1.25 billion two-part quick-to-market issue which had been restructured from what was originally planned as a single-tranche transaction.

Financial services concern iStar Inc. also drove by with a two-part offering that totaled $800 million of three- and five-year paper.

Automotive components manufacturer Delphi Powertrain priced $800 million in a single, regularly scheduled eight-year tranche.

Chemicals maker Tronox Ltd. also priced off the forward calendar following a roadshow, with $450 million of eight-year notes.

Statistical market performance measures turned mixed on Thursday, after being unchanged to higher on Wednesday.

Another numerical indicator – flows of investor cash into or out of high-yield mutual funds and exchange-traded funds, which are considered a reliable barometer of overall junk market liquidity trends – was on the downside this week, with $96 million leaving those weekly reporting-only domestic funds during the week ended Wednesday.

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