Teva prices $15 billion; Citi, Wells Fargo tap market; bonds mixed; credit spreads improve

By Cristal Cody

Eureka Springs, Ark., July 18 – Teva Pharmaceutical Industries Ltd., Citigroup Inc. and Wells Fargo & Co. tapped the high-grade primary market on Monday.

Teva priced $15 billion in six series of fixed-rate senior notes through a financing subsidiary, dropping a planned tranche of floating-rate notes.

The issue included $2 billion of 1.7% three-year notes priced at 85 basis points over Treasuries, $3 billion of 2.2% five-year notes priced at Treasuries plus 110 bps, $3 billion of 2.8% seven-year notes priced at 145 bps over Treasuries, $3.5 billion of 3.15% notes due Oct. 1, 2026 priced with a spread of 160 bps over Treasuries and $2 billion of 4.1% notes due Oct. 1, 2046 priced at 185 bps plus Treasuries.

Teva also planned to price euro- and Swiss franc-denominated notes to help fund its acquisition of the generics business of Allergan plc.

Citigroup sold $1.5 billion of 12-year subordinated notes following the release of second-quarter earnings that beat market expectations on Friday. Its subordinated notes firmed about 1 basis point in secondary trading.

Wells Fargo priced $3.6 billion of five-year senior notes in fixed- and floating-rate tranches on Monday.

JPMorgan Chase & Co.’s new 2.95% senior notes due 2026 traded 3 bps softer earlier in the day.

The Markit CDX North American Investment Grade index closed 1 bp tighter at a spread of 71 bps.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.