Published on 3/20/2024 in the Prospect News High Yield Daily.
New Issue: Medline sells $1 billion five-year secured notes at par to yield 6¼%
By Paul A. Harris
Portland, Ore., March 20 – Medline Industries, LP priced a $1 billion issue of Medline Borrower, LP five-year senior secured notes (B1/B+/BB-) at par to yield 6¼% on Wednesday, according to market sources.
The yield printed in the middle of yield talk in the 6¼% area. Initial guidance was in the mid-6% area.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were BofA Securities Inc., J.P. Morgan Securities LLC, Barclays, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., IMI Intesa Sanpaolo, Macquarie Capital (USA) Inc., Santander US Capital Markets LLC, BMO Capital Markets Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, Jefferies LLC, UBS Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC.
The Northfield, Ill.-based health care company plans to use the proceeds to refinance a portion of its term loan.
| Issuer: | Medline Borrower, LP
|
| Amount: | $1 billion
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| Issue: | Senior secured notes
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| Maturity: | April 1, 2029
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| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, Barclays, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., IMI Intesa Sanpaolo, Macquarie Capital (USA) Inc., Santander US Capital Markets LLC, BMO Capital Markets Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, Jefferies LLC, UBS Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Co-managers: | Blackstone and TCG Capital Markets
|
| Coupon: | 6¼%
|
| Price: | Par
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| Yield: | 6¼%
|
| Spread: | 194 bps
|
| First call: | April 1, 2026 at 103.125
|
| Special call: | 10% of notes annually at 103 during non-call period
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| Special call: | All notes outstanding at par plus the full coupon with the proceeds of qualified IPO during first two years
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| Trade date: | March 20
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| Settlement date: | March 27
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| Ratings: | Moody’s: B1
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| S&P: B+
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| Fitch: BB-
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| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¼% area
|
| Marketing: | Roadshow
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| Cusip: | 58506DAA6, U8357DAA8
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