Thermo Fisher, Priceline, Intercontinental Exchange, O’Reilly sell notes; credit spreads ease

By Cristal Cody

Tupelo, Miss., Aug. 10 – Deal action on Thursday included new bond pricings from Thermo Fisher Scientific Inc., Priceline Group Inc. and O’Reilly Automotive, Inc.

Thermo Fisher Scientific sold $1.5 billion of senior notes in two tranches.

Priceline Group priced a $1 billion two-part notes deal.

Also, Intercontinental Exchange Inc. sold $1 billion of guaranteed senior notes in two tranches.

O’Reilly Automotive priced $750 million of 10-year senior notes.

While the U.S. investment-grade primary market has seen heavy supply over the week, deal action has been quiet in Canada with a holiday and late summer vacations, a source said.

“The market is kind of crumbling in the U.S. right now,” the source said. “If anyone was thinking of coming this week, they’ve probably decided to stand down with U.S. spreads falling.”

Issuance could pick up in the week ahead if spreads stabilize and the market improves, the source said.

Credit spreads widened over the session. The Markit CDX North American Investment Grade index eased about 2 basis points to a spread of 62 bps.

In the secondary market, Thermo Fisher Scientific’s existing 3% senior notes due 2023 were seen 2 bps tighter at 89 bps bid, a source said. The company sold $1 billion of the notes on April 4, 2016 at 155 bps over Treasuries.

Thermo Fisher sells notes

Thermo Fisher Scientific priced $1.5 billion of senior notes (Baa2/BBB/BBB) in two parts on Thursday, according to a market source.

The $750 million tranche of 3.2% 10-year notes were sold with a spread of Treasuries plus 108 bps, on the tight side of guidance.

Thermo Fisher sold $750 million of 4.1% 30-year notes at a spread of Treasuries plus 138 bps. The notes were talked in the Treasuries plus 140 bps area.

Goldman Sachs & Co., BofA Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners.

Proceeds will be used to help fund the company’s planned $5.2 billion acquisition of Patheon NV.

Thermo Fisher is a Waltham, Mass.-based science technology company.

Priceline brings two tranches

Priceline Group sold $1 billion of senior notes (Baa1/BBB+/) in two tranches on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company placed $500 million of 2.75% notes due 2023 at 99.854 to yield 2.778%. The notes priced with a spread of 100 bps over Treasuries.

Priceline sold $500 million of 3.55% notes due 2028 at 99.918 to yield 3.559% and a spread of Treasuries plus 135 bps.

Both tranches priced on the tight side of talk.

Goldman Sachs, J.P. Morgan Securities, Wells Fargo Securities LLC, Citigroup Global Markets, BofA Merrill Lynch, TD Securities (USA) LLC and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used for general corporate purposes, including share repurchases, debt repayment and acquisitions.

Priceline is a Norwalk, Conn.-based online travel agency.

Intercontinental prices

Intercontinental Exchange sold $1 billion of guaranteed senior notes (A2/A/) in two parts on Thursday, according to a market source and an FWP filing with the SEC.

The company priced $500 million of 2.35% five-year notes at 99.771 to yield 2.398%, or a spread of Treasuries plus 62 bps. The notes were talked to price in the Treasuries plus 65 bps area.

The $500 million tranche of 3.1% 10-year notes priced at 99.792 to yield 3.124%. The notes were sold with a 92 bps spread over Treasuries, on the tight side of guidance in the 95 bps over Treasuries.

BofA Merrill Lynch, Wells Fargo Securities, MUFG, Loop Capital Markets LLC, Mizuho Securities USA LLC and PNC Capital Markets LLC were the bookrunners on the five-year notes.

BofA Merrill Lynch, Wells Fargo Securities, MUFG, BBVA Securities Inc., BMO Capital Markets Corp. and Fifth Third Securities, Inc. were the bookrunners on the 10-year notes.

The notes are guaranteed by NYSE Holdings LLC.

Proceeds will be used for general corporate purposes, including to redeem NYSE Holdings’ $850 million of 2% senior unsecured notes due in October 2017 and to pay down commercial paper.

Atlanta-based Intercontinental Exchange is a network of regulated exchanges and clearing houses for financial and commodity markets.

O’Reilly sells $750 million

O’Reilly Automotive sold $750 million of 3.6% 10-year senior notes (Baa1/BBB+/) on Thursday at a spread of Treasuries plus 140 bps, according to an FWP filing with the SEC.

The notes priced at 99.84 to yield 3.619%.

Bookrunners were BofA Merrill Lynch, Wells Fargo Securities, J.P. Morgan Securities and U.S. Bancorp Investments Inc.

Proceeds will be used to repay borrowings under the company’s credit facility and for general corporate purposes.

O’Reilly Automotive is a Springfield, Mo.-based retailer of automotive aftermarket products.

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