Medline looms on busy HY calendar; Grifols, Rockcliff, HealthEquity move up; Uniti lags

By Paul A. Harris and Abigail W. Adams

Portland, Me., Sept. 29 – News volume in the high-yield primary market remained heavy, on Wednesday, as three issuers priced $1.55 billion face amount of junk in four tranches.

On the substantial active forward calendar, the Medline Industries buyout deal is in focus, with pricing expected Thursday.

Meanwhile, the secondary space was largely unchanged after Tuesday’s rout with the 10-year Treasury yield holding above 1.5% and equity benchmarks mixed.

While there was some selling pressure, the selling was orderly and bids were still slow to get hit, a source said.

“Generally speaking, guys have cash and are looking to put it to work,” a source said. New issues remained their focus.

Grifols, SA’s 4¾% senior notes due 2028 (B3/B/B+) and Rockcliff Energy II LLC’s 5½% senior notes due 2029 (B3/B+/B+) were both on a 102-handle.

HealthEquity, Inc.’s 4½% senior notes due 2029 and TopBuild Corp.’s 4 1/8% senior notes due 2032 (Ba2/BB+) were both on a 101-handle.

However, Uniti Group LP’s 6% senior notes due 2030 were a notable exception with the notes lagging their issue price despite efforts to push them above par.

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