IG pricing spree continues with Apple, Anthem, Coke, Fannie Mae and Evergy on the tape

By Rebecca Melvin

New York, Sept. 5 – The primary investment-grade market witnessed one megadeal price at $7 billion, two deals price at $2 billion, one deal priced in the $1 billion range and a spattering of “smaller” deals priced late in the post-Labor Day week.

Apple Inc. priced the blockbuster deal of $7 billion of fixed-rate senior notes. The Cupertino, Calif.-based computer company has earmarked the notes for general corporate purposes. Apple’s deal came in a series of five.

Anthem in three parts

There was more in the windfall of tier one companies pricing deals, including health benefits company Anthem Inc., which priced $2.5 billion of fixed-rate senior notes in three tranches.

Anthem sold $850 million of 2.375% notes due 2025 at a spread of Treasuries plus 108 basis points, and $825 million of 2.875% 10-year notes with a 143 bps over Treasuries spread. The company sold an additional tranche of $825 million of 3.7% 30-year notes with a spread of Treasuries plus 178 bps.

Coca-Cola details $2 billion

Pricing emerged on Coca-Cola Co.’s $2 billion of notes in two parts that priced on Wednesday.

The beverage company sold $1 billion of 1.75% five-year notes at a spread of 47 basis points over Treasuries and $1 billion tranche of 2.125% 10-year notes that priced at a spread of 67 bps over Treasuries.

Fannie Mae sells $2 billion

In addition, Fannie Mae sold $2 billion of 1.375% three-year Benchmark Notes to yield 1.494% on Thursday. These notes priced with a spread of 7 basis points over Treasuries.

Evergy, Healthcare Trust price

Evergy, Inc. priced $1.6 billion of notes in two equal buckets, including $800 million of 2.45% notes due 2024, which priced with a spread of 105 basis points over U.S. Treasuries, and an $800 million tranche of 2.9% notes due 2029, which priced with a spread over U.S. Treasuries of 135 bps.

The Kansas City, Mo.-based electric company will use proceeds to repay the company’s $1 billion unsecured term loan due Sept. 15, 2019, to repurchase common stock and for general corporate purposes.

Scottsdale, Ariz.-based real estate investment trust Healthcare Trust of America Holdings, LP sold $900 million in two tranches of senior notes due 2026 and 2030.

The company priced $250 million of 3.5% notes due 2026 at 103.66 to yield 2.889%, or a spread of Treasuries plus 133 basis points.

Healthcare Trust sold $650 million of 3.1% notes due 2030 at 99.658 to yield 3.139% and a Treasuries plus 158 bps spread.

Late in the day: Agilent

Later Thursday, news regarding the pricing of deals from Agilent Technologies, Inc. Carlyle Group LP and Newmont Goldcorp Corp. hit the tape.

Santa Clara, Calif.-based technology company Agilent issued $500 million of 2.75% 10-year senior notes at 99.316 on Thursday to yield 2.829%, or a spread over Treasuries of 127 basis points, according to an FWP filing with the Securities and Exchange Commission.

The notes (Baa2/BBB+/BBB+) were sold by bookrunners J.P. Morgan Securities LLC and MUFG.

Proceeds will be used to fund the redemption of the company’s outstanding 5% senior notes due 2020. Any remaining proceeds will be used for general corporate purposes.

The bio-analytic and electronic measurement technology company is based in Santa Clara, Calif.

Carlyle brings $425 million

Washington, D.C.-based investment firm Carlyle Finance Subsidiary LLC priced $425 million of 3.5% senior notes due 2029.

The Rule 144A notes will be fully and unconditionally guaranteed by Carlyle Group LP and indirect subsidiaries Carlyle Holdings I LP, Carlyle Holdings II LP and Carlyle Holdings III LP.

Carlyle plans to use the proceeds to redeem all of the outstanding 5.875% series A preferred units of Carlyle Group LP. Any remaining proceeds will be used for general corporate purposes.

Following the pricing of the offering, Carlyle issued a conditional redemption notice pursuant to the tax redemption provisions of the preferred units to redeem them in full on Oct. 7, at a redemption price per unit of $25.339757, which is equal to $25.25 per preferred unit plus declared and unpaid distributions.

Newmont and Public Storage

And Denver-based gold and copper mining company Newmont Goldcorp Corp. priced $700 million of 2.8% senior notes due 2029, according to a company release on Thursday.

Proceeds will be used to repay the company's 5.125% senior notes due 2019 at maturity and for general corporate purposes.

The registered, off-the-shelf deal was sold via Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC as the bookrunners.

In addition, Public Storage sold a $275 million offering of $25-par series I cumulative preferred shares at par with a dividend of 4.875% that will be used to make investments/

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.