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Published on 12/30/2011 in the Prospect News Investment Grade Daily.

Notable high-grade deals of 2011

ARISTOTLE HOLDING INC.

Issuer:Aristotle Holding Inc.
Size/Structure:$4.1 billion of notes priced Nov. 14 in four tranches (Baa3/BBB+/BBB), includes $900 million of 2.75% three-year notes at 240 bps; $1.25 billion of 3.5% five-year notes at 260 bps; $1.25 billion of 4.75% 10-year notes at 280 bps; and $700 million of 6.125% 30-year bonds at 305 bps
Bookrunners:Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC
Proceeds:Pay a portion of the cash consideration payable to the stockholders of Medco Health Solutions, Inc.
• Notable because Aristotle was one of the few BBB names coming in at that size and financing at one of the more difficult periods of the year
GILEAD SCIENCES INC.
Issuer:Gilead Sciences Inc.
Size/Structure:$3.7 billion of notes priced in four tranches (Baa1/A-) on Dec. 6, includes $750 million of 2.4% three-year notes at 205 bps, $700 million 3.05% five-year notes at 215 bps, $1.25 billion 4.4% 10-year notes at 235 bps, and $1 billion 5.65% 30-year bonds at 260 bps
Bookrunners:Bank of America Merrill Lynch, Barclays Capital Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC
Proceeds:Pay a portion of the cash consideration for a tender offer and $11.1 billion merger with Pharmasset, Inc. along with related fees and expenses
• Notable because of its new issue concessions between 50 bps and 75 bps and because it performed well and tightened in trading
XYLEM INC. and EXELIS INC.
Issuer:ITT Corp. spinoffs Xylem Inc. and Exelis Inc.
Size/Structure:Xylem was $1.2 billion in two tranches (Baa2/BBB/BBB), including $600 million of 3.55% five-year notes at 265 bps and $600 million of 4.875% 10-year notes at 280 bps; Exelis was $650 million in two tranches (Baa3/BBB/BBB+), including $250 million 4.25% 10-year notes at 335 bps and $400 million of 5.55% 30-year bonds at 350 bps; both priced on Sept. 15.
Bookrunners:Xylem's were J.P. Morgan Securities LLC, RBS Securities Inc., Wells Fargo; Exelis' were Barclays Capital Inc., Citigroup Global Markets Inc., JPMorgan
Proceeds:General corporate purposes and to pay a special cash distribution to parent company ITT
• Notable because it was a good talking point trade. The Exelis trade didn't go well at all and Xylem went so well. It was an interesting dynamic
COCA-COLA CO.
Issuer:Coca-Cola Co.
Size/Structure:$2 billion of notes in two tranches (Aa3/A+/A+) priced Aug. 3, including $1 billion of 1.8% five-year notes at 57 bps and $1 billion of 3.3% 10-year notes at 72 bps
Bookrunners:BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co.
Proceeds:To fund a note exchange offer
• Notable for its use of proceeds involving its bottle business in Europe
GOOGLE INC.
Issuer:Google Inc.
Size/Structure:$3 billion of notes (Aa2/AA-) in three parts, priced on May 16, including $1 billion of 1.25% three-year notes at 33 bps, $1 billion of 2.125% five-year notes at 43 bps and $1 billion of 3.625% 10-year notes at 58 bps
Bookrunners:Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC
Proceeds:To repay commercial paper and for general corporate purposes
• Notable because it was the company's inaugural debt sale
VERIZON COMMUNICATIONS INC.
Issuer:Verizon Communications, Inc.
Size/Structure:$6.25 billion of notes (A3/A-/A) priced in five tranches on March 23 including $1 billion of three-year floaters priced at Libor plus 61 bps, $1.5 billion of 1.95% three-year notes at 85 bps, $1.25 billion of 2% five-year notes at 105 bps, $1.5 billion of 4.6% 10-year notes at 135 bps and $1 billion of 6% 30-year bonds priced at 165 bps
Bookrunners:Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc., Wells Fargo Securities LLC
Proceeds:To repay commercial paper and for general corporate purposes
• Notable because of its size
TRANSOCEAN INC.
Issuer:Transocean Inc.
Size/Structure:$2.5 billion of notes (Baa3/BBB-/BBB-) in three tranches on Nov. 30, including $1 billion of 5.05% five-year notes at 410 bps, $1.2 billion of 6.375% 10-year notes at 430 bps and $300 million of 7.35% 30-year bonds at 430 bps
Bookrunners:Barclays Capital Inc., Credit Suisse Securities, Mitsubishi UFJ Securities (USA) Inc.
Proceeds:About $659 million used to fund the expected repurchase of series B convertible notes that holders may require repurchase of in December. Proceeds may also be used to refinance outstanding commercial paper as it comes due
• Notable because it performed well despite its low BBB credit ratings, coming in 50 bps to 60 bps in trading before it blew back out slightly
INTEL CORP.
Issuer:Intel Corp.
Size/Structure:$5 billion of notes (A1/A+) in three parts on Sept. 14, including $1.5 billion of 1.95% five-year notes at 110 bps, $2 billion of 3.3% 10-year notes at 135 bps and $1.5 billion of 4.8% 30-year bonds at 160 bps
Bookrunners:Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co.
Proceeds:Repurchase common stock and for general corporate purposes
• Notable because it was the company's inaugural debt sale

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