Quest sets terms for $500 million sale of notes due 2029; Marriott, Dell price deals

By Devika Patel

Knoxville, Tenn., March 7 – The investment-grade bond market saw little activity towards the close of the week, with only one new deal announced on Thursday.

Madison, N.J.-based diagnostic testing company Quest Diagnostics Inc. priced $500 million of 4.2% senior notes due June 30, 2029.

Also, Bethesda, Md.-based lodging company Marriott International Inc. priced its previously announced $850 million sale of floating-rate series BB notes and series CC notes after the close on Wednesday, and Round Rock, Texas-based technology company Dell Technologies Inc. subsidiaries Dell International LLC and EMC Corp. finalized terms for an upsized $4.75 billion Rule 144A private offering of fixed-rate first-lien notes in three parts.

Quest sells $500 million notes

Quest issued $500 million of 4.2% senior notes due June 30, 2029 at 99.707 on Thursday.

The notes have a spread of Treasuries plus 160 basis points and will yield 4.236%.

Goldman Sachs & Co., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the bookrunners.

Proceeds will be used to repay debt, including the $300 million of the company’s senior notes due April 2019 and borrowings under its secured receivables credit facility, and for general corporate purposes.

Marriott sells $850 million

Marriott priced $850 million of notes in two tranches after the close on Wednesday.

The company priced $300 million of two-year floating-rate series BB notes. These notes priced at par with a coupon of Libor plus 65 bps.

Marriott also sold $550 million of 3.6% series CC notes due April 15, 2024 with a spread of Treasuries plus 120 bps. These notes priced at 99.516 to yield 3.704%.

Wells Fargo Securities, Goldman Sachs, BofA Merrill Lynch, Deutsche Bank Securities Inc. and J.P. Morgan Securities are the bookrunners.

Proceeds will be used for general corporate purposes.

Dell sells $4.75 billion notes

Dell Technologies’ subsidiaries Dell International and EMC priced an upsized $4.5 billion issue of first-lien notes in three tranches after the close on Wednesday.

The co-issuers sold $1 billion of 4% notes due July 15, 2024.

There was also a $1.75 billion tranche of 4.9% notes due Oct. 1, 2026.

Finally, there was a $1.75 billion tranche of 5.3% notes due Oct. 1, 2029.

The 2024 notes were talked in the Treasuries plus 187.5 bps area. The 2026 notes were talked in the Treasuries plus 250 to 262.5 bps area. The 2029 notes were talked in the Treasuries plus 287.5 bps area.

Barclays, BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs and J.P. Morgan Securities are the bookrunners.

The notes will be guaranteed by the parent.

Proceeds will be used to redeem or repay all of the co-issuers’ outstanding 3.48% first-lien notes due 2019, with any remaining proceeds to repay borrowings under the company’s term loan A-5 facility which matures in 2019.

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