Andeavor prices $1 billion notes in two tranches; Humana, Kingstone sell fixed-rate notes

By Devika Patel

Knoxville, Tenn., Dec. 14 – Thursday saw several new primary deals pricing, with San Antonio-based marketing, logistics and refining company Andeavor pricing a $1 billion two-tranche offering of fixed-rate senior notes due 2028 and 2048; Louisville, Ky., health care and insurance company Humana Inc. issuing an $800 million two-part sale of fixed-rate senior notes; and Kingston, N.Y., provider of property and casualty insurance products Kingstone Cos. Inc. pricing $30 million of 5.5% five-year notes.

Meanwhile investment-grade corporate funds posted their 13th consecutive weekly gain following two rare weekly losses, according to the most recently released numbers.

Sources familiar with the fund-flow statistics generated by AMG Data Services Inc. said that the funds saw a net inflow of $755 million during the reporting week ended Wednesday, on the heels of a $622 million upturn seen last week.

This week’s inflow raised the year-to-date net inflow figure to an estimated $115.77 billion from last week’s $115.01 billion, establishing a 12th consecutive new 2017 cumulative peak level, a Prospect News analysis of the data indicated.

Andeavor sells notes

Andeavor priced a $1 billion offering of senior notes (Baa3/BBB-/BBB-), according to an FWP filing with the Securities and Exchange Commission. The deal priced in two tranches on Thursday.

The company sold $500 million of 3.8% notes due April 1, 2028 at 99.853 to yield 3.818% with a spread of 147 basis points over Treasuries.

Andeavor priced $500 million of 4.5% notes due April 1, 2048 at 187 bps over Treasuries. These notes were priced at 98.574 to yield 4.588%.

Citigroup Global Markets Inc., Mizuho Securities USA Inc., MUFG, ABN Amro Inc., BofA Merrill Lynch, Goldman Sachs & Co., PNC Capital Markets LLC and RBC Capital Markets Corp. are the bookrunners.

Proceeds will be used to repay debt under the company’s revolving credit facility and for general corporate purposes.

Humana prices notes

Humana priced an $800 million offering of senior notes (Baa3/BBB+/BBB) in two tranches on Thursday.

The company sold $400 million of 2.5% three-year notes at 99.946 to yield 2.519% with a spread of 60 bps over Treasuries.

Humana priced $400 million of 2.9% five-year notes at 80 bps over Treasuries. These notes were priced at 99.83 to yield 2.937%.

BofA Merrill Lynch, Citigroup Global Markets and J.P. Morgan Securities LLC are the bookrunners.

Proceeds will be used for general corporate purposes.

Kingstone issues notes

Kingstone priced $30 million of 5.5% five-year senior unsecured notes (Kroll: BBB-) on Thursday.

The notes were sold at 99.456 to yield 5.625%.

Sandler O’Neill + Partners, LP is the bookrunner.

Proceeds will be used for organic growth and general corporate purposes.

-Paul Deckelman contributed to this report

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