Cigna prices $20 billion; CIBC sells notes; Carlyle, Mitsubishi UFJ eye deals; Pfizer mixed

By Cristal Cody

Tupelo, Miss., Sept. 6 – Cigna Corp.’s Halfmoon Parent, Inc. sold $20 billion of senior notes in 10 tranches in the high-grade primary market on Thursday.

Canadian Imperial Bank of Commerce also priced $1.5 billion of senior notes in two tranches during Thursday’s session.

High-grade supply has been heavy since the markets reopened in September following the Labor Day holiday with more than $30 billion of bonds priced on Tuesday and Wednesday. Volume has been led by Cigna’s deal, along with Pfizer Inc.’s $5 billion six-tranche sale of senior notes on Tuesday and HSBC Holdings plc’s $5.25 billion of senior notes priced in three tranches on Wednesday.

The previous session, with nearly $21 billion of volume, was the “fourth busiest day of the year,” according to a BofA Merrill Lynch note released on Thursday.

The session also marked the busiest primary market activity since June 20 when $25 billion of high-grade bonds priced, the note said.

About $45 billion to $55 billion of issuance was forecast by market sources for the week.

In other action on Thursday, the Carlyle Group (/BBB+/BBB+) concluded a two-day round of fixed income investor calls for a Rule 144A- and Regulation S-eligible offering of senior notes, according to a market source.

J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the arrangers.

Looking to the upcoming week, Mitsubishi UFJ Lease and Finance Co. Ltd. is preparing to hold a deal roadshow for a $500 million offering.

The Markit CDX North American Investment Grade 30 index ended mostly unchanged at a spread of 60 basis points.

In the secondary market, Pfizer Inc.’s senior notes (A1/AA/A+) priced in a $5 billion six-tranche offering on Tuesday were wrapped around issuance to slightly tighter.

Elsewhere, Walmart Inc. 3.7% senior notes due June 26, 2028 recovered modestly after softening 8 bps on Wednesday.

Halfmoon prices

Halfmoon priced $20 billion of senior notes (Baa1/A-/BBB) in 10 tranches on Thursday, according to a market source.

At the top of the deal, the issuer sold $1 billion of floating-rate notes due March 17, 2020 at Libor plus 35 bps.

Halfmoon priced $1.75 billion of 3.2% two-year fixed-rate notes with a spread of Treasuries plus 60 bps.

The company sold $1 billion of three-year floating-rate notes at Libor plus 65 bps and a $1.25 billion tranche of 3.4% three-year fixed-rate notes at a spread of 70 bps over Treasuries.

A $700 million tranche of five-year floating-rate notes priced at Libor plus 89 bps.

Halfmoon also sold $3.1 billion of 3.75% five-year fixed-rate notes with a Treasuries plus 102 bps spread.

The company placed $2.2 billion of 4.125% seven-year notes at a 132 bps over Treasuries spread.

A $3.8 billion tranche of 4.375% 10-year notes came at a spread of 152 bps over Treasuries.

Halfmoon sold $2.2 billion of 4.8% 20-year notes at a Treasuries plus 177 bps spread.

In the final tranche, the company priced $3 billion of 4.9% 30-year bonds with a spread of 187 bps over Treasuries.

BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the active bookrunners.

Halfmoon, currently a subsidiary of Cigna, will become the parent of Cigna following its $67 billion cash, stock and debt acquisition of Express Scripts Holding Co.

Cigna is a Bloomfield, Conn.-based health service company.

CIBC sells two tranches

Canadian Imperial Bank of Commerce priced $1.5 billion of senior notes (Aa2/A+/AA-) in two tranches on Thursday, according to an FWP filing with the Securities and Exchange Commission.

The bank sold $500 million of five-year floating-rate notes at par to yield Libor plus 66 bps.

A $1 billion tranche of 3.5% five-year fixed-rate notes priced at 99.827 to yield 3.538%, or a spread of 80 bps over Treasuries.

CIBC World Markets Corp., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch and UBS Securities LLC were the bookrunners.

The diversified financial institution is based in Toronto.

Mitsubishi UFJ preps deal

Mitsubishi UFJ Lease and Finance (A3/A-/) plans to hold fixed income investor meetings and calls for a $500 million Rule 144A- and Regulation S- eligible offering of five-year senior notes, according to a market source.

The U.S. roadshow will start on Monday.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities and Morgan Stanley & Co. LLC are the arrangers.

The Tokyo-based company and subsidiaries provide leasing and asset finance services.

Pfizer mixed

Pfizer’s 3.6% notes due Sept. 15, 2028 firmed 2 bps to trade wrapped around issuance at 72 bps bid on Thursday, according to a market source.

The company sold $1 billion of the 10-year notes on Tuesday at a spread of 72 bps over Treasuries.

Pfizer’s $1 billion of 4.2% notes due Sept. 15, 2048 traded 2 bps better on the day at 110 bps bid in the secondary market.

The notes priced in Tuesday’s offering at a spread of 115 bps over Treasuries.

The biopharmaceutical company is based in New York.

Walmart improves

Walmart’s 3.7% notes due June 26, 2028 (Aa2/AA/AA) traded on Thursday at 74 bps bid, a market source said.

The 10-year notes softened 8 bps in secondary trading on Wednesday to head out at 77 bps bid.

Walmart sold $2.75 billion of the 10-year notes on June 20 at a Treasuries plus 80 bps spread.

The discount retailer is based in Bentonville, Ark.

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