Domtar prices; Medline tranches mixed; Exeter at a premium; ConvaTec lags in junk secondary

By Paul A. Harris and Abigail W. Adams

Portland, Me., Oct. 1 – Friday brought the busy September-October crossover week to a relatively quiet close with one deal clearing the market.

Domtar Corp. priced a $775 million issue of seven-year senior secured notes (Ba2/BB+/BB+).

Meanwhile, the secondary space firmed on Friday with the market unchanged early in the session but up an 1/8 to ¼ point heading into the close, sources said.

With the 10-year Treasury yield dropping to close the day at 1.469%, rate-sensitive names saw some relief.

However, lower-coupon bonds continued to underperform their higher-coupon counterparts.

Medline Industries’ two tranches of senior notes dominated activity in the secondary space on Friday.

However, their performance was mixed with the secured notes falling flat while the unsecured notes were trading on a 101-handle.

Exeter Finance’s 6 3/8% senior notes due 2029 (B2/B-) and Consolidated Energy’s 5 5/8% senior notes due 2028 (B3/B+) were putting in strong performances.

However, American Finance Trust, Inc.’s 4½% senior notes due 2028 (BB+) were wrapped around par while ConvaTec’s 3 7/8% senior notes due 2029 (Ba2/BB+) lagging their issue price.

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