Apple, Marriott, Caterpillar Financial, John Deere Capital price; Anheuser-Busch InBev tightens

By Cristal Cody

Eureka Springs, Ark., June 7 – Investment-grade supply remained strong over the session with deals brought by issuers including Apple Inc., Marriott International, Inc., John Deere Capital Corp. and Caterpillar Financial Services Corp. on Tuesday.

Apple sold $1.38 billion of 30-year bonds.

Marriott International priced $1.5 billion of notes in two tranches.

John Deere Capital priced $500 million of 10-year senior medium-term notes.

Caterpillar Financial Services sold a $100 million add-on to its 1.35% three-year medium-term notes on Tuesday.

In the secondary market, Anheuser-Busch InBev Finance Inc.’s 3.65% notes due 2026 headed out 6 basis points better on the day.

The Markit CDX North American Investment Grade index improved less than 1 bp to end at a spread of 74 bps.

Apple prints $1.38 billion

Apple sold $1.38 billion of 4.15% notes due June 22, 2046 at par on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

Deutsche Bank AG, Taipei Branch and KGI Securities Co. Ltd. were the managers.

Apple plans to apply to list the notes on the Taipei Exchange.

The computer, mobile communication and media devices company is based in Cupertino, Calif.

Marriott prices $1.5 billion

Marriott International sold $1.5 billion of notes (Baa2/BBB/) in two tranches on Tuesday, according to an FWP filing with the SEC.

The company sold $750 million of 2.3% series Q notes due Jan. 15, 2022 at 99.587 to yield 2.379%, or 115 bps over Treasuries.

Marriott priced $750 million of 3.125% 10-year series R notes at 99.667 to yield 3.164%, or Treasuries plus 145 bps.

The bookrunners were Deutsche Bank Securities Inc., BofA Merrill Lynch and J.P. Morgan Securities LLC.

Proceeds will be used to finance the cash consideration of the merger between Marriott and Starwood Hotels & Resorts Worldwide, Inc. or for general corporate purposes if the merger is not completed.

The lodging company is based in Bethesda, Md.

John Deere Capital prices

John Deere Capital sold $500 million of 2.65% 10-year senior medium-term notes at 99.983 to yield 2.652% on Tuesday, according to an FWP filing with the SEC.

The series F notes due June 10, 2026 priced with a spread of 95 bps over Treasuries.

Citigroup Global Markets Inc., HSBC Securities (USA) Inc., MUFG and BBVA Securities Inc. were the bookrunners.

John Deere Capital is a financing arm of Moline, Ill.-based farm equipment supplier Deere & Co.

Caterpillar sells add-on

Caterpillar Financial Services sold a $100 million add-on to its 1.35% three-year medium-term notes on Tuesday at 99.902 to yield 1.384%, 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.

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 is $700 million.

U.S. Bancorp Investments, Inc. was the bookrunner.

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

Anheuser-Busch firms

Anheuser-Busch InBev’s 3.65% notes due 2026 were quoted late afternoon 6 bps tighter in secondary trading at 133 bps bid, a source said.

The notes (A3/A-/BBB+) were quoted early in the day about 1 bp better at 133 bps offered.

Anheuser-Busch InBev sold $11 billion of the bonds on Jan. 13 at Treasuries plus 160 bps.

The brewery is based in Leuven, Belgium.

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