CVS does $15 billion bond sale following Greece deal; AT&T, Verizon soft; Charter tight

By Aleesia Forni and Cristal Cody

Virginia Beach, July 13 – CVS Health Corp. sold a $15 billion bond offering on Monday following news that Greece and Europe had reached a deal to avoid Greece’s exit from the Eurozone.

Proceeds from the day’s only new issue will fund the company’s planned acquisition of Omnicare, Inc. and the pharmacy and clinic businesses of Target Corp.

The company joined the slew of investment-grade issuers that have entered the primary during the first half of the year with large deals in order to fund planned mergers and acquisitions.

Also on Monday, Export Development Canada and the European Investment Bank joined the week’s forward calendar, announcing plans to price bonds during what is predicted to be a hefty week of new issuance for high-grade bonds.

Sources are calling for around $25 billion to $30 billion of supply.

Bonds were mixed over the trading session, while credit spreads improved after a flat start.

AT&T Inc.’s 3.4% notes due 2025 eased 2 basis points.

Verizon Communications Inc.’s 3.5% notes due 2024 traded 2 bps softer.

Charter Communications Inc.’s senior secured notes (Ba1/BBB-) priced in the previous week to fund its acquisition of Time Warner Cable Inc. traded mostly better.

The Markit CDX North American Investment Grade series 23 index tightened 1 bp over the day to a spread of 68 bps.

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