Japan Bank for International Cooperation sells $5 billion; Mitsui Fudosan, Marathon price

By Cristal Cody

Tupelo, Miss., July 13 – Japan Bank for International Cooperation led pricing action in the high-grade primary market on Thursday with a $5 billion four-part issue of guaranteed senior bonds.

Japan real estate developer Mitsui Fudosan Co., Ltd. also sold a $500 million issue of 10-year notes.

In other issuance on Thursday, Marathon Oil Corp. priced $1 billion of split-rated 10-year senior notes.

Marathon Oil said in a news release that the offering and subsequent redemption of three tranches of notes will reduce its approximate $750 million of gross debt and generate annual cash interest savings of about $60 million.

“Concurrent with the offering of 2027 notes, the company terminated a notional amount of $750 million in interest rate hedges related to the offering for an estimated gain of $54 million, lowering the estimated all-in yield (after giving effect to underwriting fees and interest rate hedge settlements) to 3.862%,” Marathon Oil said in the release.

In the secondary market, UnitedHealth Group Inc.’s senior notes (A3/A+/A) traded about 10 basis points tighter to flat on the long end. Moody’s Investors Service changed the outlook on the company to stable from negative on Thursday. UnitedHealth had been on negative outlook since March 2015.

The Markit CDX North American Investment Grade index tightened more than 1 bp during the session to close the day at a spread of 59 bps.

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