Oracle prints $14 billion bonds; Express Scripts, GM Financial, ITC price; Molson Coors mixed

By Cristal Cody

Eureka Springs, Ark., June 29 – The investment-grade bond market rebounded on Wednesday with more than $20 billion of bonds priced over the session.

Oracle Corp. sold $14 billion of senior notes in five parts.

Express Scripts Holding Co. priced $4 billion of senior notes in three tranches.

General Motors Financial Co., Inc. sold $2 billion of five-year fixed-rate notes, dropping a planned five-year tranche of floating-rate notes.

ITC Holdings Corp. also tapped the primary market with a $400 million sale of 10-year senior notes.

The Markit CDX North American Investment Grade index closed the day 4 basis points better at a spread of 81 bps.

In the secondary market, Molson Coors Brewing Co.’s notes priced on Tuesday traded mostly flat to modestly tighter.

Anheuser-Busch InBev Finance Inc.’s 3.65% notes due 2026 headed out mostly flat.

Oracle prices $14 billion

Oracle sold $14 billion of senior notes (A1/AA-/) in five parts on Wednesday, according to a market source.

The company priced $4.25 billion of 1.9% notes due Sept. 15, 2021 with a spread of 90 bps plus Treasuries.

The company sold $2.5 billion of 2.4% notes due Sept. 15, 2023 at Treasuries plus 110 bps.

Oracle placed $3 billion of 2.65% notes due July 15, 2026 at 120 bps over Treasuries.

The company brought $1.25 billion of 3.85% notes due July 15, 2036 at 155 bps plus Treasuries.

In the final tranche, Oracle sold $3 billion of 4% notes due July 15, 2046 at Treasuries plus 170 bps.

BofA Merrill Lynch, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes, according to a 424B2 filing with the Securities and Exchange Commission.

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

Express Scripts’ $4 billion

Express Scripts priced $4 billion of senior notes (Baa2/BBB+/BBB) in three tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $1 billion of 3% notes due July 15, 2023 at 99.911 to yield 3.014% and a spread of Treasuries plus 170 bps.

The $1.5 billion tranche of 3.4% notes due March 1, 2027 priced at 99.959 to yield 3.405%. The 10-year notes came with a spread of 190 bps over Treasuries.

Express Scripts also sold $1.5 billion of 4.8% notes due July 15, 2046 at 99.825 to yield 4.811% and a spread of 250 bps plus Treasuries.

Citigroup, Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, JPMorgan, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Mizuho Securities USA Inc., MUFG and SunTrust Robinson Humphrey, Inc. were the bookrunners.

Proceeds will be used to repay about $1.5 billion of the company’s 2017 term loan, to fund tender offers and for general corporate purposes.

Express Scripts is a St. Louis-based pharmacy benefit management provider.

GM Financial sells $2 billion

General Motors Financial sold $2 billion of 3.2% five-year senior notes with a spread of 220 bps over Treasuries on Wednesday, according to a market source and an FWP filing with the SEC.

The notes (Ba1/BBB-/BBB-) priced at 99.817 to yield 3.24%.

Barclays, Citigroup, Commerzbank Capital Markets Corp., Morgan Stanley and TD Securities (USA) LLC were the bookrunners.

The notes are guaranteed by General Motors Financial’s operating subsidiary, AmeriCredit Financial Services, Inc.

Proceeds will be added to the company’s general funds and will be available for general corporate purposes.

General Motors Financial is the Fort Worth-based finance subsidiary of General Motors Co.

ITC prices $400 million

ITC Holdings sold $400 million of 3.25% 10-year senior notes on Wednesday with a spread of 180 bps over Treasuries, according to an FWP filing with the SEC.

The notes (Baa2/BBB+/) priced at 99.865 to yield 3.266%.

JPMorgan, BofA Merrill Lynch, Wells Fargo and Deutsche Bank Securities Inc. were the bookrunners.

Proceeds will be used to repay outstanding debt under the company’s 2013 term loan credit agreement due on Sept. 30, 2016 and its commercial paper program dated June 8, 2015.

ITC is an electricity transmission company based in Novi, Mich.

Molson Coors mixed

Molson Coors’ 3% notes due 2026 traded mostly unchanged on the day but better than issuance at 150 bps bid, 149 bps offered earlier in the session, a trader said.

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

Molson Coors’ tranche of 4.2% bonds 2046 firmed to 185 bps bid, 183 bps offered over the day, according to the trader.

The long bonds traded in the aftermarket on Tuesday at 188 bps bid, 186 bps offered.

The company priced $1.8 billion of the 30-year bonds in Tuesday’s sale at 195 bps plus Treasuries.

The brewing company is based in Denver.

Anheuser-Busch steady

Anheuser-Busch InBev’s 3.65% notes due 2026 headed out mostly unchanged at 138 bps bid, according to a market source.

Anheuser-Busch InBev sold $11 billion of the bonds (A3/A-/BBB+) on Jan. 13 at 160 bps over Treasuries.

The brewery is based in Leuven, Belgium.

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