Disney, Moody’s, Healthcare Trust, Arrow tap high-grade primary market; credit spreads firm

By Cristal Cody

Tupelo, Miss., June 1 – Investment-grade pricing action accelerated on Thursday after light activity the previous two sessions.

Walt Disney Co. sold $2 billion of medium-term notes in three tranches.

Caterpillar Financial Services Corp. brought $1.25 billion of medium-term notes in three parts.

Moody’s Corp. tapped the primary market with a $1 billion two-part offering of senior notes.

Healthcare Trust of America Holdings, LP sold $900 million of guaranteed senior notes in two tranches.

Arrow Electronics, Inc. placed $500 million of senior notes due Jan. 12, 2028.

Also, Cardinal Health, Inc. was expected to price five tranches of senior notes.

The Markit CDX North American Investment Grade index tightened about 1 basis point on Thursday to a spread of 61 bps.

Disney prices $2 billion

Walt Disney sold $2 billion of series G medium-term notes (A2/A+/A) in three tranches on Thursday, according to FWP filings with the Securities and Exchange Commission.

The company priced $500 million of three-year floating-rate notes at par to yield Libor plus 19 bps.

Walt Disney sold $750 million of 1.8% three-year fixed-rate notes at 99.884 and a spread of Treasuries plus 40 bps.

The company sold $750 million of 2.95% 10-year notes at 99.629 and a Treasuries plus 78 bps spread.

Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Credit Suisse Securities (USA) LLC, Mizuho Securities USA LLC and RBC Capital Markets, LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

Walt Disney is a Burbank, Calif.-based entertainment and media company.

Caterpillar sells notes

Caterpillar Financial Services (A3/A/A) priced $1.25 billion of series I medium-term notes in three tranches on Thursday, according to FWP filings with the SEC.

The company sold $400 million of floating-rate notes due Dec. 6, 2018 at par to yield Libor plus 18 bps.

Caterpillar Financial priced $250 million of five-year floating-rate notes at par to yield Libor plus 59 bps.

The company sold $600 million of 2.4% five-year fixed-rate notes at 99.846 to yield 2.433%, or a spread of Treasuries plus 67 bps.

Citigroup Global Markets Inc., BofA Merrill Lynch and MUFG were the bookrunners.

Nashville-based Caterpillar Financial Services is a financing arm of Caterpillar Inc.

Moody’s prices $1 billion

Moody’s sold $1 billion of senior notes (/BBB+/BBB+) in two tranches in a private placement offering on Thursday, according to a press release.

Moody’s priced $500 million of 2.625% notes due 2023.

The company sold $500 million of notes due 2028 with a 3.25% coupon.

J.P. Morgan Securities LLC, Citigroup Global Markets and BofA Merrill Lynch were the bookrunners.

Proceeds will be used, together with additional borrowings under a new term loan facility, cash and short-term debt, to fund the acquisition of Bureau van Dijk Electronic Publishing BV.

New York City-based Moody’s is the parent company of credit ratings agency Moody’s Investors Service.

Healthcare Trust brings notes

Healthcare Trust of America Holdings sold $900 million of guaranteed senior notes (Baa2/BBB/) in two tranches on Thursday, according to an FWP filing with the SEC.

The company priced $400 million of 2.95% five-year notes at 99.938 to yield 2.963%, or a spread of Treasuries plus 120 bps.

Healthcare Trust sold $500 million of 3.75% 10-year notes at 99.492 to yield 3.811% and a Treasuries plus 160 bps spread.

Wells Fargo Securities LLC, J.P. Morgan Securities, U.S. Bancorp Investments, Inc. and Jefferies LLC were the bookrunners.

The notes are guaranteed by Healthcare Trust of America, Inc.

Proceeds will be used to repay a portion of outstanding debt under the company’s revolving credit and term loan facility, to fund a portion of acquisition asset costs and for general corporate purposes.

Healthcare Trust of America is a Scottsdale, Ariz.-based real estate investment trust focused on medical office buildings.

Arrow Electronics bonds

Arrow Electronics sold $500 million of 3.875% senior notes due Jan. 12, 2028 (Baa3/BBB-/BBB-) at 99.575 to yield 3.924% and a spread of Treasuries plus 170 bps, according to an FWP filing with the SEC.

Goldman Sachs, J.P. Morgan Securities and Mizuho Securities were the bookrunners.

Proceeds will be used to repurchase a portion of the company’s $300 million outstanding 3% notes due 2018, $300 million outstanding of 6% notes due 2020, $250 million outstanding of 5.125% notes due 2021 and $200 million outstanding of 7.5% senior debentures due 2027 through a tender offer. The company also may use a portion of proceeds to redeem the $200 million outstanding of 6.875% senior debentures due 2018 that it issued a notice of redemption for on May 22.

Arrow Electronics is a Centennial, Colo.-based provider of products and services to industrial and commercial users of electronic components and enterprise computing solutions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.