FMS, Ontario, Under Armour, South Carolina Electric, Caterpillar sell deals; Dell tightens

By Cristal Cody

Eureka Springs, Ark., June 8 – High-grade primary action on Wednesday included a mix of deals.

FMS Wertmanagement brought $1.5 billion of 1.375% five-year senior notes at 99.383 to yield 1.504% on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

The notes priced at mid-swaps plus 31 bps, or Treasuries plus 28 bps.

Barclays, BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and Goldman Sachs International were the bookrunners.

The company has applied for the notes to be listed on the Luxembourg Stock Exchange.

Proceeds will be used to refinance existing liabilities in order to replace maturing, short-term money market instruments with long-term funding and for general corporate purposes.

The Province of Ontario sold $1.75 billion of three-year bonds on Wednesday.

Under Armour, Inc. priced $600 million of 10-year senior notes during the session.

South Carolina Electric & Gas Co. sold $500 million of first mortgage bonds in two tranches.

Caterpillar Financial Services Corp. returned to the primary market to price an additional $100 million add-on to its 1.35% three-year medium-term notes following a reopening on Tuesday.

The Markit CDX North American Investment Grade index closed the day about 1 basis point tighter at a spread of 73 bps.

In the secondary market, Dell, Inc.’s 6.02% senior secured notes due 2026 (Baa3/BBB-/BBB-) traded 3 bps tighter earlier in the day.

Aetna Inc.’s 3.2% senior notes due 2026 traded about 1 bp better.

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