Celgene does $8 billion deal for Receptos acquisition; bank, financial paper tighten

By Aleesia Forni and Cristal Cody

Virginia Beach, Aug. 3 – Celgene Corp. was the highlight of Monday’s investment-grade bond market, pricing $8 billion of bonds to help finance its acquisition of Receptos, Inc.

Away from the megadeal, the primary market was mostly quiet to kick off the month of August.

Kimberly-Clark Corp. offered a $550 million two-part offering of senior notes, while J.B. Hunt Transport Services, Inc. priced its new $350 million seven-year note.

In total, the high-grade primary hosted $8.9 billion of new issuance during the session.

Sources are calling for around $25 billion to $30 billion of supply for the month’s opening week.

Investment-grade bank and financial paper traded mostly better on Monday, while credit spreads opened the session softer and continued to leak wider over the day, sources said.

Bank of America Corp.’s 4% notes due 2025 traded 6 basis points better during the session.

JPMorgan Chase & Co.’s 3.125% notes due 2025 tightened 5 bps over the day.

Citigroup Inc.’s 3.3% senior notes due 2025 headed out 2 bps tighter in secondary trading.

The three-month Libor yield rose 1 bp to 31 bps on Monday.

The Markit CDX North American Investment Grade index eased 2 bps over the day to a spread of 72 bps.

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