Ryman Hospitality drives by; Medline, Miter trade at premium; funds lose $2.01 billion

By Paul A. Harris and Abigail W. Adams

Portland, Me., March 21 – Ryman Hospitality Properties, Inc. priced Thursday’s sole dollar-denominated high-yield deal, a $1 billion issue of 6½% eight-year senior notes (B1/BB-/BB-) that came at par, upsized from $800 million.

Prior to launching the upsized issue at 6½% – in the middle of the 6 3/8% to 6 5/8% price talk – it was heard to be playing to around $2.7 billion of demand, a trader said.

The start of the opening round of the National Collegiate Athletic Association’s Division One Men’s National Basketball Tournament unsurprisingly commandeered a good deal of the market’s attention throughout the Thursday session, the trader remarked.

The Friday session will be an active one in both the dollar and euro markets.

Panther Escrow Issuer, LLC and Panther Co-Issuer, Inc. are expected to price a $2.75 billion offering of seven-year senior secured notes (expected ratings B2/B/B+) on Friday, following a 10 a.m. ET conference call with investors.

The deal comes in order to finance the buyout of TIH, LLC (formerly known as Truist Insurance Holdings) by Stone Point Capital and Clayton, Dubilier & Rice.

Initial guidance is in the 7¼% area.

Reno De Medici SpA was scheduled to kick off its €590 million offering of five-year senior secured sustainability-linked floating-rate notes (expected ratings B2/B/BB-) on a Thursday investor call, with one-on-one meetings with management to follow on Friday.

Meanwhile, the secondary space continued to notch gains in response to the Fed’s announcement, sources said.

While decreased projections for rate cuts in 2025 dampened exuberance, the market continued to breathe a sigh of relief that the Fed remained committed to three rate cuts in 2024, a source said.

With the primary market reactivating, new issues and topical news continued to spark activity in the space.

Medline Industries, LP’s 6¼% senior secured notes due 2029 (B1/B+/BB-) and Miter Brands’ 6¾% senior secured notes due 2032 (B1/BB-) were trading at healthy premiums to their issue prices in active trade.

However, the destruction in Altice SA’s capital structure continued post-earnings with Altice USA, Inc. subsidiary CSC Holdings, LLC’s 11¾% senior guaranteed notes due 2029 (B2/B) dragged down with it.

High-yield mutual funds and exchange-traded funds saw a large outflow after a series of inflows with $2.01 billion leaving the space in the week through Wednesday’s close.

At a premium

The deals that priced during Wednesday’s session were putting in strong performances in active trade on Thursday.

Medline’s new 6¼% senior secured notes due 2029 traded as high as par ¾ during the session before settling into the par ½ to par 5/8 context heading into the close, a source said.

There was $41 million in reported volume.

Medline priced a $1 billion issue of the 6¼% notes at par on Wednesday.

The yield printed in the middle of yield talk in the 6¼% area.

Miter’s new 6¾% senior secured notes due 2032 broke above a par-handle to trade as high as 101 7/8.

They were trading in the par ½ to 101 context heading into the close, a source said.

Miter Brands priced an upsized $700 million, from $500 million, issue of the 6¾% notes at par on Wednesday.

Proceeds will be used to help fund the acquisition of PGT Innovations Inc.

PGT’s 4 3/8% senior notes due 2029 (B1/B+) made strong gains over the past week after shareholders voted to approve the acquisition on Monday.

The 4 3/8% notes are currently trading in the 101 5/8 to 101 7/8 context.

Altice destruction continues

Altice’s capital structure continued to crumble on Thursday after Altice France Holding SA reported earnings and warned creditors that they may need to participate in discounted transactions to reduce leverage.

Creditors were heard to have tapped advisers ahead of debt talks with the company, a source said.

Altice France’s 10½% senior notes due 2027 (Caa2/CCC) were the most active tranche in the debt pile with the notes plunging another 15 points.

They were wrapped around 38 heading into the close with the yield jumping to 53%.

There was $91 million in reported volume.

The notes dropped 18 points on Wednesday.

Altice France’s 8 1/8% senior secured notes due 2027 (B2/B-) were down another 7 to 8 points after an 11-point drop the previous session.

They were trading at 77½ heading into the close with the yield now 18 5/8%, a source said.

There was $60 million in reported volume.

The 5½% senior secured notes due 2029 were down 4 points after a 7-point drop on Wednesday.

They were trading at 68½ with the yield 13¾% heading into the close.

Altice Financing’s 5¾% senior secured notes due 2029 (B3/B) dropped another 7 points after a 6-point drop on Wednesday.

They were trading at 75¾ with the yield about 12%.

There was $43 million in reported volume.

While Altice USA subsidiary CSC Holdings’ senior notes held up comparatively well, they also continued to see selling pressure.

CSC Holdings’ 11¾% senior guaranteed notes due 2029 dropped 2 to 3 points in heavy volume with the notes giving back all gains made since the $2.05 billion issue priced at par in January.

The notes were trading in the par to par ½ context heading into the market close, a source said.

There was $60 million in reported volume.

The notes opened the week on a 104-handle.

Indexes

The KDP High Yield Daily index gained 12 basis points to close Thursday at 50.83 with the yield 6.8%.

The index gained 3 bps on Wednesday, 12 bps on Tuesday and 1 bp on Monday.

The ICE BofAML US High Yield index added 19.3 bps with the year-to-date return now 1.348%.

The index added 7.4 bps on Wednesday, 19.5 bps on Tuesday and 10.2 bps on Monday.

The CDX High Yield 30 index gained 14 bps to close Thursday at 107.35.

The index was up 35 bps on Wednesday, 21 bps on Tuesday and 13 bps on Monday.

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