Medline on deck; forward calendar grows; Altice lags; Blackstone flat; Consensus Cloud outperforms

By Paul A. Harris and Abigail W. Adams

Portland, Me., Sept. 27 – While no dollar-denominated deals cleared the high-yield primary market on Monday, the forward calendar ballooned to $12 billion.

Medline launched a roadshow for its $7.77 billion two-tranche offering, which is slated to run through Wednesday. The junk bonds are part of the largest leveraged buyout financing since the global financial crisis.

Rockcliff Energy II LLC’s $600 million offering of eight-year senior notes (B3/B+/B+) and Ahern Rentals, Inc.'s $550 million offering of five-year senior secured second-lien notes (Caa1/CCC+) are on deck for Tuesday’s session.

Meanwhile, the secondary space was again soft as the 10-year Treasury yield continued to climb, pressuring rate sensitive names.

The 10-year Treasury yield came in as the session progressed; however, it reached as high as 1.512% early in the session.

While the market was soft on Monday, trading volume outside of recent issues remained light with holders reluctant to sell.

However, the weakness in the market could be seen in the performance of some recently priced issues.

Altice France SA’s 5½% senior secured notes due 2029 (B2/B) were lagging their issue price during Monday’s session, and Blackstone Mortgage Trust, Inc.’s 3¾% senior secured notes due 2027 (Ba2/B+) were wrapped around par.

However, Consensus Cloud Solutions, Inc.’s two tranches of senior notes (B2/B+) outperformed as investors chased the higher coupon paper.

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