Primary quiet; selling pressure continues in secondary; Medline hits new low

By Paul A. Harris and Abigail W. Adams

Portland, Me., April 11 – The high-yield primary market stood stock-still on Monday, as cash bonds fell ¾ of a point and the yield of the 10-year Treasury closed above 2¾%.

There is just one deal on the active forward calendar.

Oldcastle BuildingEnvelope (Oscar AcquisitionCo LLC) is marketing a $985 million two-part buyout deal comprising a $400 million tranche of seven-year senior secured notes and a $585 million tranche of eight-year senior unsecured notes.

The primary market might see some activity during the Tuesday-Wednesday period, a trader said.

Meanwhile, selling pressure continued in the secondary space with the market down ½ point to ¾ point as Treasury yields continued to climb.

Medline Industries’ secured and unsecured notes were among the most actively traded issues in the secondary space with the notes again hitting fresh lows.

Vivint’s (APX Group, Inc.) ¾% senior notes due 2029 (Caa1/CCC) also sank to new lows in active trading.

While Earthstone Energy Holdings, LLC’s recently priced 8% senior notes due 2027 (B3/B+/B+) continued to come in from the heights reached after breaking for trade, the notes continued to hold above par, despite the weakness in the market.

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