Week’s supply tops $50 billion; Boston Scientific, Chevron Phillips price; AbbVie tight

By Aleesia Forni and Cristal Cody

Virginia Beach, May 7 – Another busy primary session on Thursday pushed the week’s total new issuance past the $50 billion mark.

Chevron Phillips Chemical Co. LLC, Anglo American Capital plc, EnLink Midstream Partners LP, Bank of America Corp. and Weingarten Realty Investors were among the issuers bringing $6.9 billion of new investment-grade paper to market.

Boston Scientific Corp. continued the trend of accessing the debt markets in order to secure acquisition financing, pricing a $1.85 billion offering in three tranches to purchase American Medical Systems Holdings Inc.’s urology portfolio.

The deal attracted around $6 billion of orders, a market source noted.

There was also a $400 million offering priced by Puget Sound Energy Inc. on Thursday, though details of the sale were unavailable at press time.

Bank and financial paper headed out mostly better over the session.

Goldman Sachs Group Inc.’s 3.5% senior notes due 2025 tightened 5 basis points in the secondary market.

Bank of America Corp.’s 4% notes due 2025 recovered losses from earlier in the week and traded 2 bps tighter.

JPMorgan Chase & Co.’s 3.125% notes due 2025 firmed 2 bps.

Earlier in the day, AbbVie Inc.’s $16.7 billion six-part offering of senior notes (Baa1/A) brought on Tuesday traded about 4 bps to 9 bps better than issuance.

The Markit CDX North American Investment Grade series 23 index was unchanged to modestly softer at a spread of 66 bps.

Boston Scientific new issue

Boston Scientific sold a $1.85 billion offering of senior notes (Baa3/BBB-/BBB-) in three tranches on Thursday, according to a market source.

The Natick, Mass-based medical device maker issued $600 million of 2.85% five-year notes at par with a spread of Treasuries plus 130 bps.

The company also priced $500 million of 3.375% seven-year notes at 99.364 with a yield of 3.478%. The issue sold with a spread of Treasuries plus 155 bps.

A $750 million issue of 3.85% 10-year notes priced at 99.86 to yield 3.867%, or Treasuries plus 170 bps.

All tranches sold at the tight end of price guidance.

Proceeds will be used to acquire American Medical Systems Holdings Inc.’s urology portfolio.

Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the joint bookrunners.

Anglo American two-parter

Anglo American Capital priced a $1.5 billion offering of senior notes on Thursday in a Rule 144A and Regulation S deal, a market source said.

There was $850 million of 3.625% notes due 2020 sold at 99.778 to yield 3.674%, or Treasuries plus 212.5 bps.

The notes were guided in the 225 bps area over Treasuries, having tightened from the Treasuries plus 237.5 bps area.

Meantime, $650 million of 4.875% notes due 2025 sold with a spread of Treasuries plus 275 bps.

The issue priced at 99.578 to yield 4.929%.

The notes sold tight of guidance set in the Treasuries plus 287.5 bps area. Guidance was unchanged from initial talk.

The bookrunners were Citigroup Global Markets, JPMorgan and RBC Capital Markets LLC.

Proceeds from the sale (Baa2/BBB-/) will be used for general corporate purposes.

The financing arm of mining company Anglo American plc is based in London.

Chevron sells $1.4 billion

Chevron Phillips Chemical was in Thursday’s market pricing a $1.4 billion issue of senior notes (A2/A-/) in three tranches, market sources said.

The issuer priced $750 million of 1.7% notes due May 1, 2018 at 99.989 with a yield of 1.704%.

Pricing was at a spread of Treasuries plus 70 bps, at the tight end of guidance set in the 75 bps area over Treasuries.

There was also $400 million of 2.45% notes due May 1, 2020 issued at a price of 99.968 to yield 2.457%, or Treasuries plus 90 bps.

Guidance was set in the Treasuries plus 95 bps area.

Finally, $250 million of floating-rate notes due May 1, 2020 priced at par to yield Libor plus 75 bps after being talked in the Libor equivalent to the five-year notes.

Bookrunners were JPMorgan, MUFG and Mizuho Securities.

The Woodlands, Texas-based petrochemical company will use proceeds to fund a distribution.

EnLink prices

EnLink Midstream Partners LP sold a $900 million issue of senior notes (Baa3/BBB/) in new and reopened tranches on Thursday, according to a market source and an FWP filed with the Securities and Exchange Commission.

The company sold $750 million of 4.15% notes due June 1, 2025 at 99.827 to yield 4.171%, or 200 bps over Treasuries.

The notes were guided in the range of Treasuries plus 200 bps to 205 bps.

A second tranche was a $150 million add-on to the company’s 5.05% notes due April 1, 2045 priced at 96.381 to yield 5.292%, or Treasuries plus 240 bps.

Pricing was at the tight end of the 240 bps to 245 bps over Treasuries guidance.

The original $300 million offering priced on Nov. 6, 2014 at Treasuries plus 200 bps.

Proceeds will be used to repay outstanding borrowings under its revolving credit facility, for capital expenditures and for general partnership purposes.

The bookrunners are Barclays, BofA Merrill Lynch, Deutsche Bank Securities, BBVA, Credit Agricole, MUFG, PNC Capital Markets, RBC Capital Markets, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc.

EnLink Midstream Partners, formerly known as Crosstex Energy, LP, is a midstream natural gas company based in Dallas.

BofA green bond

Bank of America sold a $600 million issue of 1.95% senior green bonds (Baa2/A-/A) with a spread of Treasuries plus 95 bps on Thursday, a market source said.

The issue priced at 99.994 to yield 1.952%.

Pricing was at the tight end of the Treasuries plus 100 bps area talk.

BofA Merrill Lynch was the bookrunner.

The financial services company is based in Charlotte, N.C.

Weingarten prices tight

Weingarten Realty Investors was in Thursday’s market with a $250 million offering of 3.85% 10-year senior notes (Baa2/BBB/) priced at Treasuries plus 175 bps, according to a market source and an FWP filing with the SEC.

The notes sold at the tight end of talk after having firmed from initial price thoughts set in the range of 190 bps to 195 bps over Treasuries.

The issue priced at 99.233 with a yield of 3.943%.

Bookrunners are Wells Fargo Securities LLC, BofA Merrill Lynch, Jefferies & Co. and JPMorgan.

Proceeds will be used to repay amounts outstanding under a $500 million unsecured revolving credit facility.

The real estate investment trust for shopping centers is based in Houston.

Goldman tightens

Goldman Sachs’ 3.5% notes due 2025 tightened 5 bps during the session to 140 bps bid in late afternoon trading, a source said.

The company priced an $800 million add-on to the notes (Baa1/A- /A) on March 25 at Treasuries plus 145 bps.

Goldman originally sold $1.7 billion of the notes on Jan. 20 at a spread of 170 bps over Treasuries.

The financial services company is based in New York City.

Bank of America better

Bank of America’s 4% notes due 2025 firmed 2 bps to 203 bps bid, a market source said.

Bank of America sold $2.5 billion of the notes (Baa2/A-/A) on Jan. 16 at Treasuries plus 225 bps.

The financial services company is based in Charlotte, N.C.

JPMorgan improves

JPMorgan Chase’s 3.125% notes due 2025 firmed 2 bps to 125 bps bid on Thursday, according to a market source.

JPMorgan sold $2.5 billion of the notes (A3/A/A+) on Jan. 16 at Treasuries plus 145 bps.

The financial services company is based in New York City.

AbbVie tight

AbbVie’s 1.8% notes due 2018, priced in a $3 billion issue at Treasuries plus 85 bps on Tuesday, were quoted tighter earlier on Thursday at 79 bps offered, a market source said.

The company’s $3.75 billion offering of 2.5% notes due 2020, priced with a spread of 105 bps over Treasuries, traded better at 98 bps offered.

AbbVie’s $3.75 billion tranche of 3.6% notes due 2025, sold at Treasuries plus 145 bps, were quoted tighter at 136 bps offered.

The $2.5 billion offering of 4.5% notes due 2035, priced at Treasuries plus 165 bps, traded at 161 bps offered.

AbbVie’s 4.7% notes due 2045 were quoted earlier at 175 bps offered. The company sold $2.7 billion of the notes on Tuesday at Treasuries plus 180 bps.

The biopharmaceutical company is based in Abbott Park, Ill.

© 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.