VF, Hyatt, Micron, Kroger, Jefferies in primary market; Cargill firms

By Cristal Cody

Tupelo, Miss., April 21 – Investment-grade supply included about $5.77 billion of bonds priced on Tuesday.

VF Corp. priced $3 billion of senior notes in four tranches with proceeds set in part to repay borrowings under the company’s senior revolving credit facility.

VF announced on March 23 that it drew down $1 billion from its senior revolving credit facility and announced earlier in April that it will draw down the $1 billion remaining on the facility.

Micron Technology, Inc. sold $1.25 billion of three-year senior notes and plans to use the proceeds to repay debt under the company’s $2.5 billion revolving credit facility due July 3, 2023 that was fully drawn down in March. The revolving credit facility has an interest rate of Libor plus 125 basis points.

Meanwhile on Tuesday, Hyatt Hotels Corp. priced an upsized $900 million of senior notes in two tranches.

Kroger Co. sold $500 million of 10-year senior notes.

In addition, Jefferies Group LLC priced an upsized $115 million add-on to its 5.125% senior notes due Jan. 20, 2023.

In the secondary market, high-grade bonds were mixed but some new issues have improved, sources report.

Cargill Inc.’s $1.5 billion of senior notes (A2/A/A) priced in two tranches on Monday firmed about 2 bps to 7 bps on the short end, a source said.

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