Merck, Lloyds, Lazard, Japan Finance price $7.5 billion of bonds; Dell, Cimarex eye market

By Cristal Cody

Tupelo, Miss., March 5 – Merck & Co., Inc. sold $5 billion of high-grade notes in four tranches on Tuesday following Pfizer Inc.’s $5 billion five-part bond deal priced in the previous session.

Also on Tuesday, Lloyds Banking Group plc sold $1 billion of five-year senior notes.

Lazard Group LLC raised $500 million in an offering of 10-year senior notes.

In other issuance, Japan Finance Organization for Municipalities priced $1 billion of five-year senior notes.

Meanwhile, Dell Technologies Inc. held fixed income investor calls on Tuesday for a possible offering of senior notes.

Cimarex Energy Co. also held fixed income investor calls during the session.

Nearly $15 billion of investment-grade bonds priced on Monday.

About $25 billion to $30 billion of issuance is forecast by market sources this week.

The Markit CDX North American Investment Grade 31 index softened about 1 basis point to a spread of 61 bps on Tuesday.

Merck prices $5 billion

Merck priced $5 billion of fixed-rate notes (A1/AA/) in four tranches on Tuesday, according to a market source.

A $750 million tranche of 2.9% five-year notes priced with a spread of 43 bps over Treasuries.

The company sold $1.75 billion of 3.4% 10-year notes at a Treasuries plus 75 bps spread.

A $1 billion tranche of 3.9% 20-year notes printed with a spread of 90 bps over Treasuries.

The final tranche of $1.5 billion of 4% 30-year notes priced at a Treasuries plus 100 bps spread.

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

Merck is a biopharmaceutical company based in Kenilworth, N.J.

Lloyds raises $1 billion

Lloyds Banking Group sold $1 billion of 3.9% five-year senior notes (A3/BBB+/A+) at a spread of 140 basis points over Treasuries on Tuesday, according to a market source.

Initial price guidance was in the Treasuries plus 160 bps area.

Barclays, Citigroup Global Markets Inc., Lloyds Securities Inc. and J.P. Morgan Securities were the bookrunners.

The bank and financial services group is based in London.

Lazard sells notes

Lazard Group priced $500 million of 4.375% 10-year senior notes (Baa3/A-/A-) at 99.241 to yield 4.47%, or a spread of 175 bps over Treasuries on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

Citigroup Global Markets was the bookrunner.

Lazard is a New York-based financial advisory and asset management firm.

Japan Finance prices

In other supply on Tuesday, Japan Finance Organization for Municipalities priced $1 billion of 3% senior notes due March 12, 2024 (A1/A+/) at mid-swaps plus 47 bps, or a spread of Treasuries plus 52.3 bps, according to a market source.

Initial price talk was in the mid-swaps plus 51 bps area.

Barclays, Citigroup Global Markets Ltd., Daiwa Capital Markets Europe Ltd. and Goldman Sachs International were the bookrunners of the Rule 144A and Regulation S offering.

The Japan Finance Organization for Municipalities is a Tokyo-based funding organization for Japanese local governments.

Dell holds investor calls

Dell Technologies Inc. plans to hold fixed income investor calls on Tuesday for a possible offering of senior notes (Baa3/BBB-/), according to a market source.

BofA Merrill Lynch, Barclays, Citigroup Global Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs and J.P. Morgan Securities are the arrangers.

Dell is a Round Rock, Texas-based information technology company.

Cimarex Energy active

Cimarex Energy Co. (Baa3/BBB-/) plans to hold fixed income investor calls on Tuesday, according to a market source.

J.P. Morgan Securities and Wells Fargo Securities LLC are the arrangers.

The company is expected to complete its $1.6 billion cash and stock acquisition of Resolute Energy Corp. announced in November by the end of the first quarter.

Cimarex is an oil and gas company based in Denver.

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