Molina prices; Specialty Building Products adds-on; EQT gains; FirstEnergy rises on downgrade

By Abigail W. Adams

Portland, Me., Nov. 2 – The domestic high-yield primary market saw some activity on Monday with one new deal and one add-on pricing in drive-by action.

Molina Healthcare Inc. priced $650 million of 10-year bullet notes (Ba3/BB-) and Specialty Building Products Holdings LLC, doing business as U.S. Lumber Group and SBP Finance Corp., priced a $50 million add-on to its 6 3/8% senior secured notes due 2026 (B3/B-) at 100.75 to yield 6.22%.

While Franchise Group Inc. was rumored to be pricing its $650 million offering of five-year senior secured notes on Monday, there were no updates on the deal as of press time.

Primary market activity is expected to be subdued as the market braces for another round of volatility around the presidential election.

Meanwhile, the tone of the secondary space improved dramatically on Monday following last week’s sell-off.

FirstEnergy Corp.’s senior notes were in focus on Monday with the capital structure making gains after S&P downgraded the company to junk.

EQT Corp.’s newly priced 5% senior notes due 2029 (Ba3//BB) were making gains in active trading.

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