AstraZeneca, Elanco, Roper, Apache, AerCap price; United Technologies, McDonald’s firm

By Cristal Cody

Tupelo, Miss., Aug. 14 – Deal volume remained strong in the high-grade primary market on Tuesday with new issuance bringing the week to date total to more than $23 billion.

AstraZeneca plc sold $3 billion of notes in four tranches.

Elanco Animal Health Inc. priced a $2 billion offering of senior notes in three tranches.

Roper Technologies, Inc. came with $1.5 billion of senior notes in two tranches.

Apache Corp. sold $1 billion of 10-year senior notes.

Southern Co. priced an upsized $750 million of floating-rate notes.

AerCap Ireland Capital DAC and AerCap Global Aviation Trust sold $600 million of seven-year guaranteed senior notes.

Oklahoma Gas & Electric Co. also brought $400 million of 10-year senior notes to the primary market.

In addition, the International Bank for Reconstruction and Development, or World Bank, priced $1 billion of two-year global floating-rate notes based on the new Secured Overnight Financing Rate benchmark.

The benchmark may be used to replace Libor, which will be phased out by 2021.

Tuesday’s strong deal pace followed more than $14 billion of volume on Monday that was led by an $11 billion seven-tranche offering of notes from United Technologies Corp. to fund its acquisition of Rockwell Collins, Inc.

Market sources predict the week to see about $25 billion to $30 billion of deal volume.

In the secondary market, United Technologies’ senior notes (Baa1/BBB+) tightened.

McDonald’s Corp. senior medium-term notes (Baa1/BBB+/) priced as part of a $1.8 billion three-tranche deal on Monday traded about 2 basis points to 3 bps better.

The Markit CDX North American Investment Grade 30 index closed about 1 bp tighter at a spread of 61 bps.

AstraZeneca prices $3 billion

AstraZeneca sold $3 billion of notes (A3/BBB+/A-) in four tranches on Tuesday, according to a market source.

The company priced $400 million of five-year floating-rate notes at Libor plus 66.5 bps.

AstraZeneca sold $850 million of 3.5% five-year fixed-rate notes at a spread of Treasuries plus 80 bps.

A $1 billion tranche of 4% notes due Jan. 17, 2029 priced at a Treasuries plus 115 bps spread.

The final $750 million tranche of 4.375% 30-year notes priced at a spread of 137.5 bps over Treasuries.

Bookrunners on the deal were Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC.

The biopharmaceutical company is based in Cambridge, England.

Elanco raises $2 billion

Elanco Animal Health (Baa3/BB+/) priced a $2 billion offering of senior notes in three tranches on Tuesday, according to a market source.

The company sold $500 million of 3.912% three-year notes at a spread of Treasuries plus 120 bps.

Elanco Animal Health priced $750 million of five-year notes with a Treasuries plus 150 bps spread.

The $750 million tranche of 4.9% 10-year notes were sold with a spread of 200 bps over Treasuries.

The notes priced on the tight side of guidance.

Citigroup Global Markets, Goldman Sachs and J.P. Morgan Securities were the active bookrunners.

Elanco Animal Health is an animal health products company based in Greenfield, Ind.

Roper prices $1.5 billion

Roper Technologies sold $1.5 billion of senior notes (Baa3/BBB+/) in two tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

Roper priced $700 million of 3.65% five-year notes at 99.838 to yield 3.685%, or a spread of Treasuries 92 bps.

The $800 million tranche of 4.2% 10-year notes priced at 99.892 to yield 4.213%. The notes printed with a Treasuries plus 132 bps spread.

J.P. Morgan Securities, BofA Merrill Lynch and Wells Fargo Securities LLC were the bookrunners.

Roper Technologies is a Sarasota, Fla.-based diversified technology company.

Apache sells $1 billion

Apache sold $1 billion of 4.375% 10-year senior notes (Baa3/BBB/BBB) on Tuesday at a spread of 150 bps over Treasuries, according to an FWP filing with the SEC.

The notes priced at 99.845 to yield 4.393%.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities, BofA Merrill Lynch, Citigroup Global Markets, HSBC Securities (USA) Inc., Mizuho Securities USA LLC, MUFG, Scotia Capital (USA) Inc. and TD Securities (USA) LLC were the bookrunners.

The company held fixed-income investor calls on Monday.

Apache is an oil and natural gas exploration and production company based in Houston.

Southern sells $750 million

Southern priced an upsized $750 million of senior floating-rate notes (Baa2/BBB+/BBB+) in a Rule 144A and Regulation S offering on Tuesday at Libor plus 49 bps, according to a market source.

The notes were initially talked to price in the Libor plus 50 bps area.

The deal was upsized from $500 million.

Goldman Sachs, Mizuho and Scotia Capital were the bookrunners.

Southern is an Atlanta-based electric utility company.

AerCap sells guaranteed notes

AerCap Ireland Capital/AerCap Global Aviation Trust sold $600 million of 4.45% seven-year guaranteed senior notes (Baa3/BBB-/BBB-) on Tuesday at a spread of 162.5 bps over Treasuries, according to a market source.

The notes were initially talked to price in the Treasuries plus 175 bps to 180 bps area with guidance later tightened to the Treasuries plus 165 bps area, plus or minus 2.5 bps.

Credit Suisse Securities, MUFG, RBC Capital Markets, LLC, TD Securities, Wells Fargo Securities, Barclays, BNP Paribas Securities Corp., BofA Merrill Lynch, Citigroup Global Markets, Credit Agricole CIB, Deutsche Bank Securities, Goldman Sachs, HSBC Securities, J.P. Morgan Securities, Mizuho Securities, Morgan Stanley & Co. LLC, Santander Investment Securities Inc. and SunTrust Robinson Humphrey Inc. were the bookrunners.

The notes are guaranteed by AerCap Holdings NV.

AerCap is an independent aircraft leasing company based in Amsterdam.

Oklahoma Gas prints

Oklahoma Gas & Electric sold $400 million of 3.8% 10-year senior notes on Tuesday at 99.811 to yield 3.823%, according to an FWP filing with the SEC.

The notes (A2/BBB+/A) priced with a spread of 93 bps over Treasuries.

Bookrunners were Mizuho Securities, RBC Capital Markets and Wells Fargo Securities.

The electric utility is based in Oklahoma City.

World Bank prints with SOFR

World Bank priced $1 billion of global floating-rate notes due Aug. 21, 2020 (Aaa/AAA/AAA) on Tuesday at the Secured Overnight Financing Rate plus 22 bps, according to a market source.

The notes were initially talked to price with a spread in the SOFR plus 23 bps area.

Citigroup Global Markets and TD Securities were the bookrunners.

The global development financing cooperative is based in Washington, D.C.

United Technologies firm

In the secondary market, United Technologies’ 3.65% notes due Aug. 16, 2023 traded on Tuesday at 84 bps bid, a source said.

The company sold $2.25 billion of the five-year notes on Monday at a 90 bps over Treasuries spread.

United Technologies’ 4.125% notes due Nov. 16, 2028, priced in a $3 billion tranche at a spread of 125 bps over Treasuries, tightened to 118 bps bid in the secondary market.

United Technologies is a Hartford, Conn.-based company that provides technology products and services to the building and aerospace industries.

McDonald’s improves

McDonald’s reopened 3.8% notes due April 1, 2028 tightened in secondary trading to 96 bps, a market source said Tuesday.

McDonald’s priced a $550 million reopening of the notes on Monday at a Treasuries plus 98 bps spread.

The company originally sold $500 million of the 10-year notes at a spread of 100 bps over Treasuries on March 14. The total outstanding is $1.05 billion.

McDonald’s new $750 million tranche of 4.45% notes due Sept. 1, 2048 firmed to 140 bps bid in the secondary market, the source said.

The notes priced on Monday at a spread of 143 bps over Treasuries.

The fast food chain is based in Chicago.

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