Mylan, Pfizer, JPMorgan, Norfolk, Southern California Gas price; Anheuser Busch firms

By Cristal Cody

Eureka Springs, Ark., May 31 – Investment-grade corporate bond issuance stayed strong on Tuesday to finish May out as the highest volume month with nearly $180 billion brought to market, sources reported.

Tuesday’s session saw new deals from Mylan NV, Pfizer Inc., JPMorgan Chase & Co., Norfolk Southern Corp. and Southern California Gas Co.

Mylan brought a $6.5 billion four-part private placement offering of senior notes.

Pfizer sold $5.6 billion of notes in five parts.

JPMorgan Chase priced a $4 billion three-part offering of senior global notes.

Norfolk Southern raised $600 million in an offering of 10-year senior notes.

Southern California Gas sold $500 million of 10-year first mortgage bonds.

The Markit CDX North American Investment Grade index headed out about 1 basis point softer on the day at a spread of 77 bps.

In the secondary market, Pfizer’s existing notes were mixed.

Anheuser Busch InBev Finance Inc.’s 3.65% notes due 2026 were active in secondary trading over the session and traded about 1 bp better going out.

Walgreens Boots Alliance Inc.’s $6 billion of notes (Baa2/BBB/BBB) priced in five tranches on Thursday traded about 4 bps to 12 bps tighter early in the session.

Mylan places $6.5 billion

Mylan priced $6.5 billion of senior notes (Baa3/BBB-/BBB-) in four tranches in a private placement offering on Tuesday, according to a market source and a company release.

Mylan sold $1 billion of 2.5% three-year notes at 99.888 for a spread of 150 bps over Treasuries, on the tight side of guidance of Treasuries plus 155 bps, plus or minus 5 bps.

The company priced $2.25 billion of 3.15% five-year notes at 99.884 to yield a spread of 180 bps plus Treasuries, compared to talk of Treasuries plus 185 bps, plus or minus 5 bps.

The third tranche of $2.25 billion of 3.95% 10-year notes priced at 99.231. The notes due June 15, 2026 priced at 220 bps over Treasuries, on the tight side of guidance set atTreasuries plus 225 bps, plus or minus 5 bps.

Mylan sold $1 billion of 5.25% 30-year notes at 99.984 and a spread of 260 bps over Treasuries. The bonds were talked at Treasuries plus 265 bps, plus or minus 5 bps.

BofA Merrill Lynch, Deutsche Bank Securities Inc. and Goldman Sachs & Co. were the bookrunners.

Mylan intends to use the proceeds to finance its acquisition of all of the outstanding shares of Meda AB, to refinance its debt or that of any subsidiaries, including Meda, and to pay costs associated with the acquisition and refinancing.

After the note sale is completed, Mylan intends to reduce the commitments under its Feb. 10, 2016 bridge credit agreement by the amount of the note proceeds.

Mylan is a pharmaceutical company based in Hatfield, Hertfordshire.

Pfizer prices $5.6 billion

Pfizer sold $5.6 billion of notes (A1/AA/A+) in five parts, including a tap of existing long bonds on Tuesday, according to a market source.

The company sold $1.25 billion of 1.2% notes due June 1, 2018 at Treasuries plus 35 bps, on the tight side of guidance of 40 bps, plus or minus 5 bps, over Treasuries.

Pfizer priced $850 million of 1.45% notes due June 3, 2019 at 45 bps over Treasuries, compared to talk of Treasuries plus 50 bps, plus or minus 5 bps.

The $1.15 billion tranche of 1.95% five-year notes priced with a spread of 60 bps over Treasuries. The notes were guided at Treasuries plus 65 bps, plus or minus 5 bps.

Pfizer placed $1.25 billion of 2.75% 10-year notes at 90 bps over Treasuries, compared to guidance of 95 bps, plus or minus 5 bps, over Treasuries.

In addition, Pfizer priced a $500 million add-on to its 4.4% notes due May 15, 2044 at Treasuries plus 115 bps, on the tight side of guidance of 120 bps, plus or minus 5 bps, over Treasuries.

Pfizer originally sold the 4.4% notes due 2044 in a $500 million offering on May 12, 2014 at 95 bps plus Treasuries. The total outstanding is $1 billion.

Barclays, Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.

Proceeds will be used for general corporate purposes and to repay outstanding commercial paper, according to details from a 424B3 filing with the Securities and Exchange Commission.

Pfizer is a biopharmaceutical company based in New York.

JPMorgan brings $4 billion

JPMorgan Chase sold $4 billion of senior global notes (A3/A-/A+) in three parts on Tuesday, according to a market source.

The company priced $750 million of five-year floating-rate notes at Libor plus 110 bps.

In the second tranche, JPMorgan brought $1.5 billion of 2.4% five-year notes at a spread of Treasuries plus 107 bps, on the tight side of talk of 110 bps, plus or minus 3 bps, over Treasuries.

JPMorgan sold $1.75 billion of 3.2% 10-year notes at a spread of 137 bps over Treasuries, compared to guidance of 140 bps, plus or minus 3 bps.

J.P. Morgan Securities LLC was the bookrunner.

JPMorgan Chase is a New York-based financial services company.

Norfolk Southern sells

Norfolk Southern sold $600 million of 2.9% 10-year senior notes at 99.662 to yield 2.939% on Tuesday, according to a FWP filing with the Securities and Exchange Commission.

The notes due June 15, 2026 (Baa1/BBB+/) priced with a spread of 110 bps over Treasuries.

Goldman Sachs & Co., BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

Norfolk Southern is a railroad operator based in Norfolk, Va.

Southern California Gas prices

Southern California Gas priced $500 million of 2.6% 10-year first mortgage bonds with a spread of 78 bps over Treasuries on Tuesday, according to a FWP filing with the Securities and Exchange Commission.

The series TT bonds due June 15, 2026 (Aa2/A+/AA-) priced at 99.806 to yield 2.622%.

BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Samuel A. Ramirez & Co., Inc., UBS Securities LLC and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used to repay about $200 million of outstanding commercial paper and for general corporate purposes.

The natural gas distributor is based in Los Angeles.

Anheuser-Busch improves

Anheuser Busch InBev’s 3.65% notes due 2026 traded about 1 bp tighter on Tuesday at 130 bps bid in the secondary market, a source said.

The company sold $11 billion of the notes (A3/A-/BBB+) on Jan. 13 at a spread of Treasuries plus 160 bps.

The brewer is based in Leuven, Belgium.

Walgreens tightens

Walgreens’ 2.6% notes due 2021 were seen at 120 bps offered in the secondary market early on Tuesday, a source said.

The company sold $1.5 billion of the five-year notes on Thursday at Treasuries plus 125 bps.

Walgreens’ tranche of 3.45% notes due 2026 were quoted at 161 bps offered early in the session. The notes were sold in a $1.9 billion tranche on Thursday at Treasuries plus 165 bps.

Walgreens’ 4.65% bonds due 2046 also were stronger in early secondary trading at 192 bps offered. The company sold $600 million of the long bonds on Thursday at 205 bps over Treasuries.

Walgreens is a Deerfield, Ill.-based drugstore chain.

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