KfW, Priceline, Whirlpool sell bonds; AT&T stable; CVS Health firms; credit spreads soften

By Cristal Cody

Eureka Springs, Ark., May 18 – Investment-grade bond issuance on Wednesday included a $5 billion global note from KfW.

Priceline Group Inc. also tapped the primary market over the session with a $1 billion offering of 10-year notes.

Whirlpool Corp. sold $500 million of 4.5% 30-year notes with a spread of 190 basis points over Treasuries on Wednesday.

HSBC Holdings plc also was expected to price a notes deal.

Credit spreads softened over the day after opening mostly flat. The Markit CDX North American Investment Grade index eased 1 bp to end at a spread of 84 bps.

In the secondary market, AT&T Inc.’s 4.125% notes due 2026 reopened earlier in the month were unchanged.

CVS Health Corp.’s $3.5 billion of notes (Baa1/BBB+) priced on Monday traded 2 bps to 3 bps tighter earlier in the day.

KfW prices $5 billion

KfW sold $5 billion of 1.5% five-year global notes at 99.767 on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities plc were the managers.

The German government-owned development bank is based in Frankfurt.

Priceline sells $1 billion

Priceline Group sold $1 billion of 3.6% 10-year senior notes at 99.807 to yield 3.623% on Wednesday, according to an FWP filing with the SEC.

The notes priced with a spread of 180 bps plus Treasuries.

The bookrunners were Goldman Sachs & Co., BofA Merrill Lynch, Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and U.S. Bancorp Investments Inc.

Proceeds will be used for general corporate purposes, which may include share repurchases, debt repayment and acquisitions.

Priceline is a Norwalk, Conn.-based travel agency.

Whirlpool raises $500 million

Whirlpool sold $500 million of 4.5% 30-year senior notes with a spread of 190 bps over Treasuries on Wednesday, according to an FWP filing with the SEC.

The company priced the notes at 99.201 to yield 4.549%.

The bookrunners were Citigroup, Mizuho Securities USA Inc., BNP Paribas Securities Corp. and JPMorgan.

Proceeds will be used to repay debt maturing in 2016 and for general corporate purposes.

Whirlpool is a Benton Harbor, Mich.-based appliance maker.

AT&T flat

AT&T’s 4.125% notes due 2026 (Baa1//A-) were unchanged on the day at 167 bps bid, a market source said.

AT&T sold $900 million in a tap of the issue on May 3 at a spread of Treasuries plus 150 bps.

The notes originally were priced on Jan. 29 in a $1.5 billion tranche at Treasuries plus 195 bps.

AT&T is a Dallas-based telecommunications company.

CVS Health firms

CVS Health’s 2.125% notes due 2021 traded 3 bps better early Wednesday at 89 bps offered, according to a market source.

The company sold $1.75 billion of the five-year notes on Monday at a spread of Treasuries plus 92 bps.

CVS Health’s 2.875% notes due 2026 firmed 2 bps to 120 bps offered in the secondary market.

The 10-year notes were sold on Monday in a $1.75 billion tranche at a spread of 122 bps over Treasuries.

The pharmacy retailer is based in Scarsdale, N.Y.

© 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.