FMS, Ontario, Under Armour, South Carolina Electric, Caterpillar bring deals; Dell tightens

By Cristal Cody

Eureka Springs, Ark., June 8 – High-grade primary action on Wednesday included a mix of deals.

FMS Wertmanagement brought $1.5 billion of five-year senior notes to market.

The Province of Ontario sold $1.75 billion of three-year bonds on Wednesday.

Under Armour, Inc. priced $600 million of 10-year senior notes during the session.

South Carolina Electric & Gas Co. sold $500 million of first mortgage bonds in two tranches.

Caterpillar Financial Services Corp. returned to the primary market to price an additional $100 million add-on to its 1.35% three-year medium-term notes following a reopening on Tuesday.

The Markit CDX North American Investment Grade index closed the day about 1 basis point tighter at a spread of 73 bps.

In the secondary market, Dell, Inc.’s 6.02% senior secured notes due 2026 (Baa3/BBB-/BBB-) traded 3 bps tighter earlier in the day.

Aetna Inc.’s 3.2% senior notes due 2026 traded about 1 bp better.

FMS raises $1.5 billion

FMS Wertmanagement sold $1.5 billion of 1.375% five-year senior notes at 99.383 to yield 1.504% on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

The notes priced at mid-swaps plus 31 bps, or Treasuries plus 28 bps.

Barclays, BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and Goldman Sachs International were the bookrunners.

The company has applied for the notes to be listed on the Luxembourg Stock Exchange.

Proceeds will be used to refinance existing liabilities in order to replace maturing, short-term money market instruments with long-term funding and for general corporate purposes.

The financial services company is based in Munich.

Ontario prints $1.75 billion

Ontario sold $1.75 billion of 1.25% three-year bonds on Wednesday at mid-swaps plus 31 bps, or Treasuries plus 39.9 bps, according to an FWP filing with the SEC.

The notes priced at 99.765 to yield 1.33%.

Barclays, Citigroup Global Markets Inc., BofA Merrill Lynch, RBC Capital Markets, LLC, BMO Capital Markets Corp., CIBC World Markets Corp., National Bank of Canada Financial Inc., Scotia Capital (USA) Inc. and TD Securities (USA) LLC were the underwriters.

The proceeds will be used for general provincial purposes.

Under Armour sells

Under Armour sold $600 million of 3.25% 10-year senior notes with a spread of 160 bps over Treasuries, according to an FWP filing with the SEC.

The notes priced at 99.577 to yield 3.3%.

The bookrunners were J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, HSBC Securities (USA) Inc. and PNC Capital Markets LLC.

Proceeds will be used to repay debt under the company’s revolving credit facility.

Under Armour is a Baltimore-based developer, marketer and distributor of brand performance apparel, footwear and accessories.

SCE&G’s first mortgage bonds

South Carolina Electric & Gas sold $500 million of first mortgage bonds in two tranches on Wednesday, according to an FWP filing with the SEC.

The company priced $425 million of 4.1% bonds due June 15, 2046 at 99.794 to yield 4.112%, or a spread of 160 bps over Treasuries.

South Carolina Electric & Gas also sold a $75 million reopening of its 4.5% bonds due June 1, 2064 at 97.843 to yield 4.612%, or 210 bps plus Treasuries.

The company originally priced $300 million of the bonds on May 20, 2014 at 98.938 to yield 4.554%, or Treasuries plus 120 bps. The total outstanding is $375 million.

The bookrunners were BB&T Capital Markets, JPMorgan, MUFG, TD Securities (USA) LLC, UBS Securities LLC and Wells Fargo.

Proceeds will be used to repay short-term debt, to finance capital expenditures and for general corporate purposes.

South Carolina Electric & Gas is a regulated utility based in Cayce, S.C.

Caterpillar sells another tap

Caterpillar Financial Services sold an additional $100 million add-on to its 1.35% three-year medium-term notes on Wednesday at 99.902 to yield 1.384% following a reopening on Tuesday, according to an FWP filing with the SEC.

The series H notes due May 18, 2019 priced with a spread of 46 bps over Treasuries.

Caterpillar Financial Services priced a $100 million add-on to the notes on Tuesday at the same price, yield and spread.

The company originally sold $600 million of the notes on May 13 at 99.944 to yield 1.369%, or 48 bps plus Treasuries. The total outstanding now is $800 million.

BofA Merrill Lynch was the bookrunner.

The funding arm of heavy equipment maker Caterpillar Inc. is based in Nashville.

Dell firms

Dell’s 6.02% notes due 2026 traded 3 bps tighter at 397 bps offered early on Wednesday, a market source said.

The company sold $3.75 billion of the notes on May 17 at Treasuries plus 425 bps.

The technology and services company is based in Round Rock, Texas.

Aetna improves

Aetna’s 3.2% notes due 2026 were quoted about 1 bp tighter in morning secondary trading at 140 bps offered, according to a market source.

The company sold $2.8 billion of the notes (Baa2/A/A-) on Thursday at Treasuries plus 145 bps.

The diversified health-care benefits company is based in Hartford, Conn.

© 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.