Mylan prices $1 billion dual-tranche deal to close week; bank, financial paper mostly soft

By Aleesia Forni and Cristal Cody

New York, Dec. 4 – Mylan NV sold a $1 billion issue of senior notes on Friday in two tranches, closing out a week for the high-grade primary that beat expectations.

A $500 million 3% tranche of three-year notes sold at Treasuries plus 180 basis points. Pricing was at 99.874 to yield 3.044%.

And a $500 million 3.75% tranche of five-year notes sold at 99.968 to yield 3.757%, or Treasuries plus 205 bps.

Both tranches sold around 20 bps inside the mid-point of initial talk.

The bookrunners were Goldman Sachs & Co., Deutsche Bank Securities Inc. and MUFG.

The Hatfield, England-based company plans to use the proceeds to repay debt and to fund a share repurchase.

Primary activity has been on fire this week, with more than $32 billion of new investment-grade issuance pricing.

Sources expect another $30 billion to $35 billion of supply to enter the primary market in the week ahead.

Bank and financial paper was mostly weaker in secondary trading on Friday.

Bank of America Corp.’s 3.875% senior notes due 2025 traded about 1 bp better.

Citigroup Inc.’s 4.4% subordinated notes due 2027 eased 2 bps in the secondary market.

Goldman Sachs Group Inc.’s paper traded 3 bps to 6 bps wider.

JPMorgan Chase & Co.’s 4.25% subordinated notes due 2027 headed out 5 bps softer.

© 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.