Lloyds prints $1 billion; Omega Healthcare, Western Gas price; credit spreads tighten

By Cristal Cody

Eureka Springs, Ark., June 30 – Lloyds Banking Group plc, Omega Healthcare Investors Inc. and Western Gas Partners LP all tapped the investment-grade primary bond market on Thursday.

Lloyds Banking Group sold $1 billion of five-year senior notes.

Omega Healthcare Investors came to the market with a $700 million offering of seven-year senior notes.

Western Gas Partners priced $500 million of 10-year senior notes.

High-grade credit spreads tightened over the session. The Markit CDX North American Investment Grade index ended the day 4 basis points better at a spread of 77 bps.

New investment-grade bonds were mixed in secondary trading earlier in the day.

Oracle Corp.’s $14 billion of senior notes (A1/AA-) that priced in five parts on Wednesday traded about 6 bps to 20 bps tighter in the secondary market.

Molson Coors Brewing Co.’s senior notes (Baa3/BBB-) were mostly unchanged.

Lloyds prices $1 billion

Lloyds Banking Group sold $1 billion of 3.1% five-year senior notes on Thursday at 99.926 to yield 3.116%, according to an FWP filing with the Securities and Exchange Commission.

The notes (Baa1/BBB+/A+) priced with a spread of 210 bps over Treasuries.

Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Lloyds Securities and Morgan Stanley & Co. LLC were the bookrunners.

A planned tranche of floating-rate notes was dropped from the sale.

The London-based bank plans to use the proceeds for general corporate purposes.

Omega Healthcare prices

Omega Healthcare Investors sold $700 million of 4.375% seven-year senior notes with a spread of 312.5 bps over Treasuries on Thursday, according to an FWP filing with the SEC.

The notes priced at 99.739 to yield 4.418%.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Credit Agricole CIB and Stifel, Nicolaus & Co., Inc. were the senior managers.

The notes are fully and unconditionally guaranteed by Omega’s existing and future subsidiaries that guarantee debt under the company’s existing senior notes and the facilities under the company’s credit agreements.

Proceeds will be used to repay outstanding borrowings under its revolving credit facility and for general corporate purposes.

Omega is a Hunt Valley, Md.-based real estate investment trust investing in and providing financing to the long-term-care industry.

Western Gas brings deal

Western Gas Partners sold a $500 million offering of 4.65% 10-year senior notes (Ba1/BBB-/BBB-) at 99.796 to yield 4.676% on Thursday, according to an FWP filing with the SEC.

The notes priced with a spread of 320 bps over Treasuries.

Deutsche Bank Securities Inc., Mizuho Securities USA Inc., Barclays, Citigroup, PNC Capital Markets LLC, TD Securities (USA) LLC and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used to repay a portion of the amount outstanding under the company’s revolving credit facility.

The Woodlands, Texas-based Western Gas Partners owns, develops and operates U.S. midstream energy assets.

Oracle stronger

Oracle’s 1.9% notes due 2021 were quoted early Thursday 10 bps better at 80 bps offered in secondary trading, a source said.

The company sold $4.25 billion of the notes on Wednesday at 90 bps over Treasuries.

Oracle’s $3 billion tranche of 2.65% notes due 2026, which priced at 120 bps over Treasuries, firmed to 114 bps offered in the secondary market.

The computer software and technology company is based in Redwood City, Calif.

Molson Coors unchanged

Molson Coors’ 3% notes due 2026 were unchanged earlier at 150 bps bid in the secondary market, a source said.

The company sold $2 billion of the 10-year notes at a spread of 155 bps over Treasuries on Tuesday.

The brewing company is based in Denver.

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