Medline deal leads $9.95 billion Thursday HY primary; LSB, New Enterprise on 101-handle

By Paul A. Harris and Abigail W. Adams

Portland, Me., Sept. 30 – Although high-yield primary market activity in September fell short of expectations, it went out with a bang on Thursday as eight issuers priced $9.95 billion in nine tranches.

The lion's share of it came from Medline Industries which priced a downsized $7 billion two-tranche offering.

Meanwhile, the secondary space was largely unchanged on Thursday as accounts closed the books on the third quarter.

While rising Treasury yields continued to pressure rate-sensitive names, new deals remained in demand with the majority continuing to perform well in the aftermarket.

LSB Industries, Inc.’s 6¼% senior notes due 2028 (B3/B-) and New Enterprise Stone & Lime Co., Inc.’s 5¼% senior secured notes due 2028 (B2/B+) were putting in strong performances with both issues on a 101-handle as investors sought out the higher-yielding notes.

However, Foot Locker, Inc.’s 4% senior notes due 2029 (Ba2/BB+) fell largely flat in the aftermarket, which was attributed to their tight pricing.

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