Disney, Moody’s, Healthcare Trust, Arrow tap high-grade primary market; credit spreads firm

By Cristal Cody

Tupelo, Miss., June 1 – Investment-grade pricing action accelerated on Thursday after light activity the previous two sessions.

Walt Disney Co. sold $2 billion of medium-term notes in three tranches. The company priced $500 million of three-year floating-rate notes at par to yield Libor plus 19 bps; $750 million of 1.8% three-year fixed-rate notes at 99.884 and a spread of Treasuries plus 40 bps; and $750 million of 2.95% 10-year notes at 99.629 and a Treasuries plus 78 bps spread.

Caterpillar Financial Services Corp. brought $1.25 billion of medium-term notes in three parts. The company sold $400 million of floating-rate notes due Dec. 6, 2018 at par to yield Libor plus 18 bps; $250 million of five-year floating-rate notes at par to yield Libor plus 59 bps; and $600 million of 2.4% five-year fixed-rate notes at 99.846 to yield 2.433%, or a spread of Treasuries plus 67 bps.

Moody’s Corp. tapped the primary market with a $1 billion two-part offering of senior notes.

Healthcare Trust of America Holdings, LP sold $900 million of guaranteed senior notes in two tranches.

Arrow Electronics, Inc. placed $500 million of senior notes due Jan. 12, 2028.

Also, Cardinal Health, Inc. was expected to price five tranches of senior notes.

The Markit CDX North American Investment Grade index tightened about 1 basis point on Thursday to a spread of 61 bps.

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