Johnson & Johnson, Eli Lilly, Principal Life, IFC price notes; high-grade inflows decline

By Cristal Cody

Tupelo, Miss., Aug. 20 – Johnson & Johnson led deal action in the high-grade primary market on Thursday with a $7.5 billion six-tranche offering of fixed-rate notes (Aaa/AAA/) priced to fund its estimated $6.5 billion acquisition of Momenta Pharmaceuticals, Inc.

The deal attracted strong demand with a cumulative final book size of over $17 billion, a source said.

Johnson & Johnson’s notes, which included five, seven-, 10-, 20-, 30- and 40-year tranches, all priced 15 basis points better than talk.

Eli Lilly & Co. sold $1.1 billion of senior notes (A2/A+/A) in two tranches on Thursday, including a $250 million tap of its 2.25% notes due May 15, 2050 and $850 million of new 40-year notes.

Also on Thursday, Principal Life Global Funding II priced $400 million of 10-year senior secured notes (A1/A+/) backed by funding agreements in a Rule 144A and Regulation S offering upsized from $300 million.

Meanwhile, pricing action continued on Thursday in the sovereign, supranational and agency market.

International Finance Corp. (Aaa/AAA/) priced $1 billion of 10-year global notes on top of talk.

In other activity, a multiple tranche offering of dollar-denominated senior notes (Baa3/BBB-/BBB-) is expected soon from Royalty Pharma plc following fixed income investor calls held on Wednesday for the Rule 144A and Regulation S deal.

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