UPC, Catalent, Vine price deals; new attack on ACA roils hospitals

By Paul A. Harris

Portland, Ore., Oct. 13 – In Friday’s high yield market three deals cleared, bringing the week’s issuance to $6.27 billion, down significantly from the previous week’s $10.10 billion and the slowest level of activity since the holiday-shortened Sept. 4 week.

UPC Holding BV had the day’s biggest deal, a $550 million issue of 10-year senior notes (B2/B/B) that priced at par to yield 5 ½%.

Not far behind, Vine Oil & Gas LP priced $530 million of 8¾% 5.5-year senior notes at a discount to yield 8.985%, close to the high end of talk and trailing changes to covenants.

Catalent Pharma Solutions, Inc. priced a $450 million issue of eight-year senior notes (B3/B+) at par to yield 4 7/8%, the tight end of talk.

The secondary spotlight fell on the hospital sector, sending bonds lower, as the Trump administration went out with plans to choke off government payments to the health insurance companies in its latest assault on the Affordable Care Act.

Bonds in the sector initially fell 1 to 2 points but some names managed to regain part of those losses as the day progressed.

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